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DOCUMENTS 
DEPT. 


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B    3    DTD    TDE 


GIFT   OF 


DOCUMENTS 

DEPT. 


GdTiai«     STATE  OF  NEW  YORK 
NOV  25  1918 

Public  Service  Commission 

SECOND  DISTRICT 


w* 


Uniform  System  of  Accounts  for 
Gas  Corporations 


SECOND  CONDENSED  SCHEME 

For  Corporations  Having  Gross  Operating  Revenues  from  Gas  Operations 

Amounting  to 

Less  Than  $100,000  Per  Annum 


ADOPTED  DECEMBER  16,  J908 


ALBANY 

J.  B.  LYON  COMPANY,  STATE  PRINTERS 

1908 


» 


** 


STATE     OF     NEW     YORK 

Public  Service  Commission 

SECOND     DISTRICT 

Albany.   December   21,   1908. 


To 


The  following  order  has  been  adopted  by  this  Commission,  and  is  hereby 
served  on  you.  Please  acknowledge  receipt  at  once,  using  the  form  inclosed 
herewith. 

Yours  very  truly, 


State  or  New  York,  ) 

Office  ot  tbe  public  Service  Commissions  ss-: 

SECOND     DISTRICT  ) 

I  have  compared  the  following  copy  with  the  original  on  file  in  this  office, 
1  I  do  HEREBY  CERTIFY  the  same  to  be  a  correct  transcript  therefrom 
ad  of  the  whole  thereof. 

ICUtnCSS  my  hand  and  the  Seal  of  Office  of  the  Public  Ser- 
vice Commission,  Second  District,  at  the  City  of 
Albany,  this  twenty-first  day  of  December,  one  thou- 
sand nine  hundred  and  eight. 

» 


Secretary. 


274660 


State  of  New  York, 
Public  Service  Commission,  Second  District. 
At  a  session  of  the  Public  Service  Commission,  Second 
District,  held  at  the  Capitol,  Albany,  on  the   Kith 
day  of  December,   1908. 

Present : 

Frank  VV.  Stevens,  Chairman, 
Thomas  M.  Osborne, 
Martin  S.  Decker, 
James  E.  Sague, 
John  B.  Olmsted, 

Commissioners. 

Ordered:  That,  except  as  hereinafter  provided: 

1.  On  and  after  January  1,  1909,  every  gas  corporation  whose  revenues 
from  gas  operations  as  denned  in  the  hereto  annexed  schedule  marked 
"  Schedule  A"  were,  during  the  year  ended  June  30,  1907,  below  the  sum  of 
one  hundred  thousand  dollars  ($100,000)  shall  keep  upon  its  books  the 
accounts  prescribed  or  defined  in  the  said  "  Schedule  A",  so  far  as  the  said, 
accounts  are  pertinent  to  the  facts  and  circumstances  of  the  said  corporation. 
The  term  gas  corporation  is  used  herein  in  the  sense  defined  in  the  Public 
Service  Commissions  Law  (except  that  corporations  whose  operations  are 
confined  exclusively  to  natural  gas,  gasoline  gas,  and  acetylene,  are  excluded 
herefrom ) . 

2.  On  and  after  the  date  of  service  of  this  order  on  any  such  gas  cor- 
poration, such  corporation  shall  not  charge  to  any  account  representing 
cost  of  property  any  discount  or  commission  on  securities  issued  by  the  said 
corporation,  but  shall  charge  all  such  discounts,  commissions,  and  other 
expense  connected  with  the  issue  of  securities  subsequent  to  the  said  date  of 
service,  in  accordance  with  the  directions  contained  in  the  definitions  of  the 
account  named  Organization,  and  the  account  named  Unamortized  Debt  Dis- 
count and  Expense,  in  the  said  "  Schedule  A". 

3.  On  and  after  January  1,  1909,  every  such  gas  corporation  shall  keep 
upon  its  books  the  accounts  prescribed  or  defined  in  the  hereto  annexed 
schedule  marked  "  Schedule  B ",  so  far  as  the  same  are  pertinent  to  the 
facts  and  circumstances  of  the  said  corporation. 

4.  During  the  year  beginning  January  1,  1909,  any  said  corporation  may 
for  purposes  of  comparison  with  prior  years  keep  on  its  books  any  account 
pertaining  to  revenues,  revenue  deductions,  income  deductions,  and  appro- 
priations (as  defined  in  the  said  "  Schedule  B  ")  which  it  had  on  its  books 
during  the  year  begun  January  1,  1908;  provided  that  on  or  before  January 
1,  1909,  there  be  filed  with  the  Public  Service  Commission  a  statement  con- 
taining a  list  of  the  said  accounts  pertaining  to  the  year  begun  January  1, 
1908,  and  definitions  of  such  accounts. 

5.  For  purposes  of  improving  the  efficiency  of  administration  and  operation, 
any  corporation  may,  unless  or  until  otherwise  ordered,  keep  upon  its  books 

[3] 


4  Public  Service  Commission,  Second  District 

any  temporary  or  experimental  accounts  and  any  accounts  covering  particular 
divisions  of  its  operations,  provided  that  in  respect  of  each  such  temporary, 
experimental,  or  divisional  account,  the  said  corporation  shall  file  with  the 
Public  Service  Commission,  at  least  ten  days  in  advance  of  the  time  when 
the  said  account  is  to  be  instituted,  a  statement  showing  the  name  of  the 
said  account,  the  date  when  it  is  to  be  instituted,  the  purpose  for  which  it  is 
to  be  kept,  the  period  of  time  during  which  it  is  to  be  kept,  and  a  clear 
and  accurate  definition  of  the  classes  of  items  and  facts  to  be  contained  in 
the  said  account;  and  in  case  of  a  divisional  account,  the  definition  of  the 
division  covered.  Upon  compliance  with  the  provisions  of  this  paragraph, 
any  account  herein  prescribed  or  defined  in  either  said  "  Schedule  A"  or  said 
"  Schedule  B  "  may  be  subdivided. 

6.  All  notices  herein  required  to  be  filed  concerning  accounts  shall  be  upon 
sheets  9y2  inches  by  12  inches  in  size,  and  shall  be  entitled  in  the  name  of 
the  corporation  filing  said  notices,  followed  by  a  brief  statement  of  the  charac- 
ter of  the  accounts  covered  by  the  notice. 


SCHEDULE  A. 


BALANCE  SHEET  OR  INDICANT  ACCOUNTS. 

i.  Gas  Corporations  and  Gas  Operations  defined. —  Section  2  of  the  Public 

Service  Commissions  Law  defines  gas  corporation  as  follows: 

§  2.  The   term    "  gas    corporation  "...      includes   every    corpora- 

tion, compcny,  association,  joint  stock  association,  partnership  and  person,  their 
lessees,  trustees  or  receivers  appointed  by  any  court  whatsoever,  owning,  operating, 
managing  or  controlling  any  plant  or  property  for  manufacturing  and  distributing 
and  selling  for  distribution  or  distributing  illuminating  gas  (natural  or  manufac- 
tured)  for  light,  heat  or  power. 

Gas  operations,  as  the  term  is  hereinafter  used,  include  all  acts  and 
transactions  directly  connected  with  the  operation  of  a  plant  for  the  pro- 
duction of  gas  (whether  natural  or  manufactured),  the  transmission  thereof 
and  the  supply  thereof  to  consumers  for  light,  heat,  or  power,  and  all 
operations  incident  thereto,  including  the  collection  of  revenues  therefor  and 
the  disposition  of  byproducts  produced  in  connection  therewith. 

2.  Accounts  to  he  kept  by  double-entry  method. — All  accounts  kept  by  any 
corporation  or  person  within  the  scope  of  the  present  order  shall  on  and 
after  January  1,  1909,  be  kept  by  the  double-entry  method. 

Note. —  This  requirement  is  not  intended  to  apply  to  purely  statistical  accounts. 

CAPITAL  ACCOUNTS. 

3.  Capital  defined. — As  the  term  is  used  herein,  ty  capital  of  a  corporation 
is  meant  all  property  devoted  to  the  rendering  of  the  services  or  the  pro- 
duction of  the  commodities  which  are  within  the  purposes  of  the  corporation. 

4.  Fixed  Capital  defined. —  Capital  which  has  an  expectation  of  life  in 
service  of  more  than  one  year  (exception  being  made  of  hand  and  other 
small  portable  tools  liable  to  be  lost  or  stolen1)    is  called  fixed  capital. 

5.  Floating  Capital  defined. —  Capital  other  than  fixed  capital  is  called  float- 
ing capital. 

6.  General  Capital  and  Departmental  Capital  defined. —  Fixed  capital  is  di- 
visible into  general  capital  and  departmental  capital,  general  capital  being 
that  which  is  indiscriminately  available  for  the  uses  of  two  or  more  classes 
of  operations,  while  departmental  capital  is  that  assigned  solely  or  principally 
to  a  single  class  of  operations. 


1  Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall,  when  first* 
acquired  and  before  issued  for  use,  be  carried  in  a  suitable  Materials  and  Supplies 
account;  when  issued  they  shall  be  charged  to  the  appropriate  expense  account. 
Portable  tools  and  apparatus  of  special  value  may,  however,  be  charged  to  the 
appropriate  tangible  capital  account,  and  remain  therein  so  long  as  record  is  kept 
of  the  persons  to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are 
made  responsible  therefor. 

15] 


6  Public  Service  Commission,  Second  District 

7.  Landed  Capital  and  Non-landed  Capital  defined.— Fixed  capital  is  also 
divisible  into  landed  capital  and  non-landed  capital.  Landed  capital  includes 
all  interests  in  land  (exclusive  of  improvements  thereon)  the  term  of  which 
is  more  than  one  year.  All  other  fixed  capital  is  herein  called  non-landed 
capital. 

8.  Intangible  and  Tangible  Capital  distinguished.— Non-landed  capital  is 
divisible  into  intangible  and  tangible.  Intangible  capital  comprises  organ- 
ization, franchises,  patent-rights,  and  all  other  intangible  property  within 
the  definition  of  fixed  non-landed  capital  as  above  stated.  Tangible  capital 
comprises  structures  and  equipment  having  an  expectation  of  life  in  service 
of  more  than  one  year.  Because  of  their  liability  to  loss  or  theft,  hand 
and  other  small  portable  tools  are  excepted  from  tangible  capital,  and  the 
cost  of  such  tools  when  issued  is  required  to  be  treated  as  a  part  of  the 
operating  expenses.1 

9.  Further  Classification  of  Capital.— Capital  is  also  divisible  into  original 
capital,  additions,  betterments,  and  renewals  and  replacements,  as  defined 
below.  Charges  to  capital  accounts  shall  show  these  divisions  as  set  forth 
in  paragraph  21,  infra. 

10.  Original  Capital  defined. —  Original  capital  is  that  put  into  service  at 
the  outset  of  an  enterprise. 

11.  Additions  defined. — Additions  include  additional  structures,  facilities,  or 
equipment  not  taking  the  place  of  anything  previously  existing. 

12.  Betterments  defined. — Betterments  include  the  enlargement  or  improve- 
ment of  existing  structures,  facilities,  and  equipment. 

13.  Renewals  defined. —  Renewals  include  all  extensions  of  terms  of  years 
in  land  and  tangible  fixed  capital,  and  all  extensions  of  the  life  period  of 
franchises  and  other  intangible  fixed  capital. 

14.  Replacements  defined. —  Replacements  include  all  substitutions  for  capi- 
tal exhausted  or  become  inadequate  in  service,  the  substitutes  having  sub- 
stantially no  greater  capacity  than  the  things  for  which  they  were  substi- 
tuted. When  a  substitute  has  a  substantially  greater  capacity  than  that 
for  which  it  is  substituted,  the  cost  of  substitution  of  one  of  the  same 
capacity  as  the  thing  replaced  should  be  charged  as  a  replacement,  and  the 
remaining  portion  of  the  cost  of  the  actual  substitute  should  be  charged 
as  a  betterment. 

15.  Repairs  defined. —  When  through  wear  and  tear  or  through  casualty  it 
becomes  necessary  to  replace  some  part  of  any  structure,  facility,  or  unit 
of  equipment,  and  the  extent  of  such  replacement  does  not  amount  to  a  sub- 
stantial change  of  identity  in  such  structure,  facility,  or  unit  of  equipment, 
the  replacement  of  such  part  is  to  be  considered  a  repair,  and  the  cost  of 
such  repair  is  to  be  treated  as  an  operating  expense  and  must  not  be 
charged  as  a  replacement  in  any  capital  account. 


1  Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall,  when  first 
acquired  and  before  issued  for  use,  be  carried  in  a  suitable  Materials  and  Supplies 
account ;  when  issued  they  shall  be  charged  to  the  appropriate  expense  account. 
Portable  tools  and  apparatus  of  special  value  may,  however,  be  charged  to  the 
appropriate  tangible  capital  account,  and  remain  therein  so  long  as  record  is  kept 
of  the  persons  to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are 
made  responsible  therefor. 


Accounts  foe  Gas  Coepoeations         7 

16.  First  entries  must  enable  identification.— Throughout  all  capital  ac- 
counts, the  first  entry  in  respect  of  any  particular  thing  shall  describe  it 
with  such  particularity  as  to  enable  its  identification,  and  shall  give  it  a 
distinguishing  name,  number,  or  other  designation  by  which  it  shall  there- 
after be  designated  in  every  entry  in  any  capital  account  which  in  any  way 
concerns  it.  In  the  case  of  continuous  structures  like  railroad  track,  or 
electric  line,  or  pipe  line,  such  structures  shall  be  itemized  to  the  extent  that 
no  item  shall  contain  more  than  one  operating  division  or  more  than  one 
type  of  construction,  and  the  first  entry  in  relation  to  any  item  shall  describe 
the  size,  weight,  type,  and  other  principal  physical  characteristics  of  the  chief 
constituent  parts,  together  with  their  spacing  if  discontinuous. 

17.  Costs  of  new  capital  to  be  actual  .money  costs. — All  charges  made  to 
capital  or  other  accounts  on  or  after  January  1,  1909,  shall  be  the  actual 
money  cost  of  the  things  in  respect  of  which  they  are  made.  When  the  con- 
sideration actually  given  for  the  thing  in  respect  of  which  a  charge  to  a 
capital  account  is  made  is  anything  other  than  money,  the  actual  considera- 
tion shall  be  described  in  the  entry  with  sufficient  fullness  and  particularity 
to  identify  it,  and  the  amount  charged  shall  be  the  actual  money  value  of 
such  consideration  at  the  time  of  the  transaction. 

18.  Discounts  upon  securities  not  to  be  charged  to  capital  accounts. —  Dis- 
counts upon  securities  and  other  commercial  paper  issued  in  payment  for 
capital  are  to  be  provided  for  in  other  accounts  and  must  in  no  case  be 
charged  to  the  capital  accounts. 

19.  Costs  of  labor,  materials,  and  supplies. —  Cost  of  labor  (employed  in 
construction)  includes  not  only  wages,  salaries,  and  fees  paid  employees,  but 
also  such  personal  expenses  of  employees  as  are  borne  by  the  corporation. 
Cost  of  materials  and  supplies  consumed  in  construction  is  the  cost  at  the 
places  where  they  enter  into  construction,  including  cost  of  transportation 
and  inspection  when  specifically  assignable.  If  such  materials  and  supplies 
are  passed  through  storehouses,  their  cost  entered  in  the  account  may  include 
a  suitable  proportion  of  store  expense. 

20.  Withdrawals  or  retirements. —  When  anything  is  withdrawn  or  retired 
from  service,  the  amount  at  which  such  thing  stood  charged  in  the  capital 
account  shall  be  credited  to  the  capital  account  in  which  it  stood  charged 
at  the  time  of  withdrawal,  and  the  entry  of  such  credit  shall  cite  by  name 
and  page  of  book  or  other  record  the  original  entry  of  cost  of  the  thing 
withdrawn.  If  there  is  no  such  original  entry,  that  fact  shall  be  stated  in 
connection  with  the  credit  entry,  and  the  actual  amount  originally  charged 
shall  be  credited.  If  such  amount  is  not  known,  it  shall  be  estimated,  the 
facts  upon  which  the  estimate  is  based  shall  be  shown,  and  the  amount 
thus  estimated  to  be  the  original  charge  in  respect  of  such  thing  withdrawn 
shall  be  credited. 

21.  Particulars  required  to  be  shown  in  entries. —  Every  charge  made  to  * 
capital  account  on  or  after  January  1,  1909,  shall  show  whether  the  thing 
in  respect  of  which  the  charge  is  made  is  original  capital,  or  an  addition,  a 
betterment,  a  renewal,  or  a  replacement.  If  the  thing  is  a  betterment,  the 
entry  shall  designate  the  thing  enlarged  or  improved  and  shall  cite  by  name 
and  page  of  book  or  other  record  the  original  entry  of  cost  of  such  thing 


8  Public  Service  Commission,  Second  District 

enlarged  or  improved.  If  the  thing  to  which  any  charge  hereafter  made 
relates  is  a  renewal  or  a  replacement,  the  entry  made  in  respect  thereof 
shall  designate  the  thing  renewed  or  replaced  and  shall  cite  by  name  and 
page  of  book  or  other  record  the  original  entry  or  entries  of  cost  of  such 
thing  renewed  or  replaced.  If  there  is  no  entry  in  the  accounts  of  the 
corporation  showing  the  cost  (to  the  corporation)  of  the  thing  bettered,  re- 
newed, or  replaced,  that  fact  shall  be  stated  in  the  entry  describing  the 
betterment,  renewal,  or  replacement,  and  the  original  cost  of  such  thing  to 
the  corporation  shall  be  stated.  Such  cost  shall  be  estimated  if  not  known, 
and  when  estimated  the  basis  of  such  estimation  shall  be  shown. 

22.  Betterments  involving  partial  destruction  of  thing  bettered. —  If  any 
betterment  involves  the  partial  destruction  or  partial  reconstruction  of  the 
thing  bettered,  only  such  portion  of  the  cost  of  the  change  shall  be  charged 
as  a  betterment  as  will  when  added  to  the  original  cost  (estimated  if  not 
known)  of  the  thing  bettered  give  the  cost  of  reconstruction  or  replacement 
of  the  thing  as  bettered,  and  the  remainder  of  the  cost  of  the  change  (account 
being  taken  of  any  salvage)  shall  be  charged  to  the  appropriate  repair 
account. 

E.  g.,  a  building,  original  cost  unknown  but  estimated  to  be  $15,000,  is  bettered 
by  tbe  construction  of  an  elevator  shaft,  and  its  stairways  are  modified  so  as  to  be 
fireproof ;  the  actual  expenditure  for  these  changes  is  $3,000  ;  the  estimated  cost 
of  replacement  of  the  building  (as  modified)  with  one  equally  serviceable  and  with 
an  equal  expectation  of  life  is  $16,000  ;  the  charge  to  capital  account  as  a  better- 
ment should  be  $1,000,  and  the  remainder  ($2,000)  of  the  expenditure  should  be 
charged  to  the  appropriate  repairs  account. 

23.  Plant  and  equipment  and  other  capital  purchased. —  When  any  fixed 
capital  in  the  form  of  a  going  or  completed  plant  is  purchased,  an  appraisal 
of  such  capital  so  acquired  shall  be  made,  and  the.  different  constituent  ele- 
ments of  the  plant  (and  equipment,  if  any)  or  other  capital  acquired  shall 
be  appraised  at  their  structural  value ;  that  is  to  say,  at  the  estimated  cost 
of  replacement  or  reproduction  less  deterioration  to  the  then  existing  condi- 
tion through  wear  and  tear,  obsolescence,  and  inadequacy.  If  the  actual 
money  value  of  the  consideration  given  for  the  plant  or  other  capital  was 
at  the  time  of  the  acquisiticn  in  excess  of  such  appraised  value,  the  excess 
shall  be  charged  to  the  account  "  Other  Intangible  Gas  Capital,"  and  the 
appraised  values  of  the  constituent  elements  shall  be  charged  to  the  appro- 
priate accounts  as  designated  in  the  following  definitions  of  accounts  for  fixed 
capital.  If  the  actual  money  value  of  the  consideration  given  was  not  in 
excess  of  such  appraised  value,  such  actual  money  value  shall  be  distributed 
through  the  said  accounts  in  proportion  to  the  said  appraised  value  of  the 
constituent  elements  appropriate  to  the  respective  accounts.  Full  report  of 
the  contract  of  acquisition,  the  consideration  given  therefor,  the  determina- 
tion of  the  actual  money  value  of  such  consideration,  the  appraisal,  and  the 
amounts  charged  to  the  respective  accounts  for  each  plant  or  other  such  fixed 
capital  purchased,  will  be  required  to  be  made  to  the  Public  Service  Commis- 
sion, and  the  purchaser  will  be  required  to  procure  in  connection  with  the 
acquisition  of  any  such  plant  or  other  fixed  capital  all  existing  records,  memo- 
randa, and  accounts  in  the  possession  or  control  of  the  grantor  relating  to 
the  construction  and  improvement  of  such  plant,  and  to  preserve  such  records, 
memoranda,  and  accounts  until  authorized  by  law  to  destroy  or  otherwise 
dispose  of  them. 


Accounts  foe  Gas  Coeporations  9 

24.  Definitions  of  Fixed  Capital  accounts. —  In  the  following  definitions  of 
accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted  solely  for 
convenience  of  reference  and  are  no  part  of  the  titles  or  of  the  definitions: 
G100.  Fixed  Capital,  December  31,   1908. 

Charge  to  this  account  all  the  Fixed  Capital  of  the  accounting  person  or 
corporation  devoted  to  gas  operations  as  such  capital  stood  at  the  close 
of  December  31,  1908.  Such  charges  shall  be  made  at  the  figures  at  which 
such  capital  was  carried  on  the  books  of  the  said  person  or  corporation 
on  that  date.  When  any  capital  included  in  such  account  is  retired  from 
service,  the  amount  at  which  it  is  charged  therein  shall  be  credited  to  this 
account;  the  amount  of  depreciation  or  other  amortization  thereon  appli- 
cable to  the  period  subsequent  to  December  31,  1908,  shall  be  charged  to 
account  No.  374,  "Accrued  Amortization  of  Capital,"  proper  account  shall  be 
taken  of  any  salvage,  and  the  remainder  of  the  amount  originally  charged 
to  capital  shall  be  concurrently  charged  to  the  Corporate  Surplus  or  Deficit 
account  (or  equivalent  account  carried  on  the  books  on  December  31,  1908), 
unless  there  was  carried  on  the  books  at  that  date  a  reserve  to  cover  retire- 
ment of  capital  from  service,  in  which  case  the  said  concurrent  charge  shall 
be  made  to  such  retirement  reserve  account.  If  the  amount  at  which  the  said 
capital  in  service  on  December  31,  1908,  and  subsequently  retired  from  service, 
was  included  in  the  said  account  is  not  disclosed  on  the  books  and  records 
of  the  accounting  person  or  corporation  and  is  not  within  the  knowledge  of 
such  person  or  corporation  or  officers  or  other  employees  thereof,  it  shall  be 
estimated,  and  such  estimated  amount  shall  be  treated  as  is  above  directed  for 
the  actual  amount,  the  fact  of  estimation  being  stated  in  the  entry. 

Note. —  Corporations  will  be  required  to  carry  as  sub-accounts  of  the  account 
"  Fixed  Capital,  December  31,  1908,"  the  several  accounts  on  their  books  on  that 
date  which  are  combined  to  make  up  the  said  account,  and  to  furnish  information 
concerning  such  sub-accounts  in  their  annual  reports. 

The  following  capital  accounts  are  prescribed  for  transactions  subsequent  to 
December  31,  1908: 

G110.  Land  Devoted  to  Gas  Operations. 
Charge  to  this  account  the  cost  of  the  accounting  corporation's  landed 
capital  which  is  devoted  to  gas  operations  as  hereinbefore  defined.  This 
includes  land  occupied  by  gas  works  and  their  appurtenances  and  rights 
of  way  for  transmission  and  distribution  lines  and  other  pipe  lines,  where 
such  rights  have  lives  in  excess  of  one  year  from  the  date  when  such  land 
is  placed  in  service.  Such  cost  includes,  when  assumed  or  paid  by  the  pur- 
chaser in  its  own  behalf,  cost  of  registration  of  title,  cost  of  examination  of 
title,  conveyancer's  and  notary's  fees,  purchasing  agent's  commissions  or  fees, 
or  proportion  of  purchasing  agent's  salary,  taxes  accrued  to  date  of  transfer 
of  title,  and  all  liens  upon  the  title  acquired;  also  costs  of  obtaining  con- 
sents and  payments  for  abutting  damages. 

Note  A. —  Cost  of  buildings  and  other  improvements  must  not  be  included  in  this 
account. 

Note  B. —  If  at  the  time  of  acquisition  of  an  interest  in  lands  it  extends  to 
buildings  or  other  improvements  thereon,  which  improvements  are  devoted  by  the 
corporation  to  its  gas  operations,  and  the  contract  of  acquisition  does  not  de- 
termine the  price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash 
value  for  use  in  such  operations,  and  such  appraised  value  shall  be  charged  to  the 
appropriate  structures  account,  and  excluded  from  the  account  "  Land  Devoted  to 


10  Public  Service  Commission,  Second  District 

Gas  Operations ".  If  such  improvements  are  not  devoted  to  gas  operations 
but  are  devoted  to  other  operations  or  held  as  investments,  the  cost  (or  appraised 
value  if  the  cost  is  not  determined  in  the  contract  of  acquisition)  shall  be  charged 
to  the  appropriate  investment  account  or  capital  account  for  other  operations.  If 
the  improvements  are  removed  or  wrecked,  the  salvage  (less  the  cost  of  removal 
or  wreckage)  shall  be  excluded  from  the  account  "  Land  Devoted  to  Gas  Opera- 
tions ".  The  entries  in  this  account  must  be  made  in  such  wise  as  to  enable  the 
corporation  to  show  in  its  annual  report  to  the  Public  Service  Commission  the 
subdivision  of  the  cost  of  its  land  devoted  to  gas  operations  into  the  following : 

Land  Occupied  by  Gas  Works. 

Land  Occupied  by  Outside  Holder  Stations. 

Water  Rights. 

Other  Land   Devoted   to   Gas   Operations. 

101.  Organization. 
Charge  to  this  account  all  fees  paid  to  governments  for  the  privilege  of 
incorporation,  and  all  office  and  other  expenditure  incident  to  organizing  the 
corporation  or  other  enterprise  and  putting  it  in  readiness  to  do  business. 
This  includes  cost  of  preparing  and  distributing  prospectuses,  cost  of  solicit- 
ing subscriptions  for  stock  (but  not  for  loans  nor  for  the  purchase  of  bonds 
or  other  evidence  of  indebtedness ) ,  cash  fees  paid  to  promoters,  and  the  actual 
cash  value  at  the  time  of  organization  of  securities  paid  to  promoters  for 
their  services  in  organizing  the  enterprise,  counsel  fees,  cost  of  preparing  and 
issuing  certificates  of  stock,  and  cost  of  procuring  certificates  of  necessity 
from  state  authorities,  and  other  like  costs.  Like  costs  incident  to  pre'paring 
and  filing  certificates  of  authorization  of  increase  of  capital  stock,  and  to  the 
negotiation  and  issue  of  stock  thereunder,  shall  be  classed  as  additions.  Cost 
Df  preparing  and  filing  certificates  of  amendment  of  articles  of  incorporation 
shall  be  classed  as  a  betterment.  Cost  of  preparing  and  filing  papers  in  con- 
nection with  the  extension  of  the  term  of  incorporation  or  with  reincorporation 
consequent  upon  reorganization  shall  be  classed  as  a  renewal.  This  account 
shall  not  include  any  discounts  upon  stocks  or  other  securities  issued,  nor 
shall  it  include  any  costs  incident  to  negotiating  loans  or  selling  bonds  or 
other  evidence  of  indebtedness. 

G102.  Franchises  (Gas). 

To  this  account  shall  be  charged  "  the  amount  (exclusive  of  any  tax  or  an- 
nual charge)  actually  paid  to  the  State  or  to  a  political  subdivision  thereof 
as  the  consideration  for  the  grant  of  such  franchise  or  right"  (section  69 
of  the  Public  Service  Commissions  Law)  as  is  necessary  to  the  conduct  of 
the  corporation's  gas  operations.  If  any  such  franchise  is  acquired  by 
mesne  assignment,  the  charge  to  this  account  in  respect  thereof  must  not 
exceed  the  amount  actually  paid  therefor  by  the  corporation  to  its  as- 
signor, nor  shall  it  exceed  the  amount  specified  in  the  statute  above  quoted. 
Any  excess  of  the  amount  actually  paid  by  the  corporation  over  the  amount 
specified  in  the  statute  shall  be  charged  to  the  account  "  Other  Intangible 
Gas  Capital  ".  If  any  such  franchise  has  a  life  of  not  more  than  one  year 
after  the  date  when  it  is  placed  in  service,  it  shall  not  be  charged  to  this  ac- 
count but  to  the  appropriate  accounts  in  "  Operating  Expenses,"  and  in  "  Pre- 
payments "  if  extending  beyond  the  fiscal  year. 

Payments  made  to  the  State  or  to  some  subdivision  thereof  as  a  considera- 
tion for  granting  an  extension  for  more  than  one  year  of  the  life  period  of  a 
franchise  shall  be  classed  as  renewals.  Those  made  as  a  consideration  for 
franchises  or  extensions  thereof  covering  additional  territory  to  be  operated 


Accounts  for  Gas  Corporations         11 

as  a  part  of  an  existing  system  shall  be  classed  as  betterments.  If  the  fran- 
chises cover  separate  and  distinct  new  enterprises,  the  payments  therefor  shall 
be  classed  as  original. 

Note. — Annual  or  more  frequent  payments  in  respect  of  franchises  must  not  be 
charged  to  this  account  but  to  the  appropriate  tax  cr  operating  expense  account. 

G103.  Patent-rights  (Gas). 
Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more  than 
one  year  from  the  date  when  placed  in  service)  acquired  by  the  corporation 
in  or  under  valid  patents  granted  by  the  United  States  to  inventors  for  in- 
ventions and  discoveries  which  are  necessary  to  the  economical  conduct  of  the 
corporation's  gas  operations.  If  any  such  right  is  extended  to  cover  a 
further  period  of  time  than  that  covered  by  the  original  grant,  the  cost  of 
such  extension  shall  be  classed  as  a  renewal.  A  patent-right  acquired  for  use 
in  an  existing  system  and  necessary  to  the  economical  operation  thereof  shall 
be  classed  as  an  addition. 

G104.  Other  Intangible  Gas  Capital. 

Charge  to  this  account  the  cost  of  all  other  property  coming  within  the 
definition  of  intangible  capital  and  devoted  to  gas  operations.  All  entries 
of  charges  to  this  account  shall  describe  the  acquired  property  with  sufficient 
particularity  clearly  to  identify  it,  and  shall  also  show  specifically  the 
principal  from  whom  acquired  and  all  agents  representing  such  principal  in 
the  transaction;  also  the  term  of  life  of  such  property,  estimated  if  not 
known,  and  if  estimated,  the  facts  upon  which  the  estimate  is  based. 
G121.  General  Structures. 

Charge  to  this  account  the  cost  of  all  buildings  and  other  structures  of  a 
permanent  character  devoted  to  general  corporate  purposes,  not  restricted 
to  gas  operations  and  not  includible  in  any  of  the  departmental  accounts; 
also  of  all  fixtures  permanently  attached  thereto  and  made  a  part  thereof, 
such  as  water  pipes  and  fixtures,  steam  pipes  and  fixtures  for  warming  and 
-ventilating,  gas  pipes  and  fixtures  for  lighting,  etc.,  electric  wiring  and  fix- 
tures for  lighting,  signaling,  etc.;  elevators,  etc.,  and  the  engines  and  motors 
specially  provided  for  operating  them;  furnaces,  boilers,  etc.,  specially  pro- 
vided for  producing  steam  for  such  engines  and  for  heating;  electric  gen- 
erators specially  provided  for  producing  current  for  lighting  such  buildings, 
etc.  This  account  includes  such  piers  and  other  foundations  for  machinery 
and  apparatus  as  are  designed  to  be  as  permanent  as  the  buildings  in  (or  in 
connection  with)  which  they  are  constructed,  and  to  outlast  the  first  ma- 
chinery or  apparatus  mounted  thereon. 

Note  A. — ■  Among  such  buildings  may  be  mentioned  general  office  buildings,  gen- 
eral shop  buildings,  general  storehouses,  general  stable  buildings,  etc.  Where 
general  offices,  shops,  storehouses,  stables,  etc.,  are  in  buildings  includible  in  a 
departmental  account,  as  e.  g.,  in  n  retort  house,  no  part  of  the  cost  of  such 
building  shall  be  charged  to  this  account.  This  account  is  provided  for  struc- 
tures of  a  general  or  miscellaneous  character  not  assignable  to  any  particular 
department. 

Note  B. —  When  furnaces  and  boilers  are  used  primarily  for  furnishing  steam 
for  some  particular  department  and  only  incidentally  for  furnishing  steam  for 
heating  a  general  building  and  operating  the  equipment  therein,  the  entire  cost  of 
such  furnaces  and  boilers  shall  be  charged  to  the  appropriate  departmental  capital 
account,  and  no  part  to  the  account  "  General  Structures  ". 

Note  C. —  The  cost  of  specially  provided  foundations,  not  expected  to  outlast  the 
machinery  or  apparatus  mounted  thereon,  should  be  charged  to  the  same  account 
as  is  the  cost  of  the  machinery  or  apparatus  for  which  they  are  provided. 


12  Public  Service  Commission,  Second  District 

G122.  General  Equipment. 
Charge  to  tins  account  the  cost  of  all  equipment  of  general  structures,  as 
provided  under  the  following  heads: 

a.  General  Office  Equipment:  This  includes  the  cost  of  all  equipment  of 
general  offices,  such  as  desks,  chairs,  tables,  movable  safes,  filing  cases,  draft- 
ing-room equipment,  and  other  like  office  appliances  and  equipment;  also 
engineering   instruments. 

b.  General  Shop  Equipment:  This  includes  the  cost  of  all  equipment 
specially  provided  for  general  shops,  such  as  furnaces,  boilers,  gas  producers, 
engines,  electric  generators,  and  other  power  apparatus  used  in  operating 
machinery  in  such  shops;  machine  tools,  cranes,  hoists,  shafting,  belts,  and  the 
like  shop  equipment;  also  such  smithing  equipment  in  general  shops  as  is 
used  principally  for  other  general  purposes  than  shoeing  horses  and  repairing 
vehicles. 

Note. —  Hand  and  other  small  portable  tools  liable  to  be  lost  or  stolen  shall 
not  be  included  herein,  but  portable  tools  and  apparatus  of  special  value  may  be 
charged  to  this  account  and  remain  herein  so  long  as  record  is  kept  of  the  persons 
to  whom  such  tools  and  apparatus  are  issued  and  such  persons  are  made  respon- 
sible  therefor. 

c.  General  Store  Equipment :  This  includes  the  cost  of  all  equipment  of 
general  store  structures,  such  as  movable  counters,  movable  shelving,  and 
other  movable  equipment  of  like  nature,  carts,  barrows,  trucks,  etc.,  and  other 
apparatus  and  appliances  used  in  handling  materials  and  supplies. 

Note. —  Counters,  shelving,  and  the  like  which  are  permanently  attached  to  the 
structure  shall  be  charged  to  account  No.  6121,  "  General  Structures,"  and  not  to 
this  account. 

d.  General  Stable  Equipment :  This  includes  the  cost  of  all  equipment  of 
general  stables,  including  horses,  harness,  drays,  wagons,  automobiles  and 
other  vehicles,  equipment  of  shoeing  shops,  harness  repair  shops,  vehicle  re- 
pair shops,  etc. 

221.  Works  and   Station   Structures. 

Charge  to  this  account  the  cost  of  all  structures  at  works  devoted  to  the 
production  of  gas,  including  purification  and  all  other  processes  performed 
upon  such  gas  antecedent  to  its  entrance  into  the  station  holder;  also  of 
all  buildings  and  other  structures  at  outlying  holder  stations,  except  the 
holders  and  their  appurtenances  as  provided  in  the  following  account, 
"  Holders  ".  Such  structures  include  retort  houses,  generator  houses,  purifier 
houses,  engine  houses,  boiler  houses,  meter  houses,  coal  sheds,  coke  sheds, 
tar  houses,  oil  tanks,  tar  wells,  and  other  structures  for  storage  of  fuel 
to  be  consumed  or  carbonized  in  the  production  of  gas  and  the  operations 
auxiliary  thereto;  structures  for  residuals  and  byproducts;  appurtenant 
walks,  fences,  drives,  tramways,  trestles,  etc.,  and  all  fixtures  permanently 
attached  to  such  structures  and  made  a  part  thereof. 

Note. —  Such  piers  and  other  foundations  for  machinery  and  apparatus  as  are 
designed  to  be  permanent  and  to  outlast  the  first  machinery  or  apparatus  mounted 
thereon  shall  also  be  charged  to  this  account ;  hut  short  lived,  temporary,  or 
specially  provided  foundations  and  settings  for  furnaces  and  boilers,  steam  engines, 
gas  engines,  pumps,  generators,  benches,  condensers,  washers,  scrubbers,  purifiers, 
etc.,  shall  go  with  the  machinery  and  apparatus  to  which  they  are  related.  Gas 
holders  are  not  includible  in  this  account. 


Accounts  foe  Gas  Cobpobations  13 

222.    Holders. 

Charge  to  this  account  the  cost  of  all  holders  at  works  and  outlying  sta- 
tions, including  tanks,  foundations,  holders,  frame  work,  guides,  pulleys,  etc., 
and  inlet  and  outlet  valves  of  such  holders. 

Note. — ■  Holder  housings  shall  be  charged  to  account  No.  221,  "  Works  and  Sta- 
tion Structures  ". 

G141a.  Furnaces,  Boilers,  and  Accessories. 

Charge  to  this  account  the  cost  of  all  furnaces,  boilers,  and  boiler  apparatus 
and  accessories  devoted  to  the  production  of  steam  for  use  in  producing  gas 
and  in  furnishing  motive  power  in  gas  works  and  stations.  This  includes 
boilers  and  valves  thereto  attached,  appurtenant  furnaces  and  grates,  and 
flues  leading  to  smokestacks  and  chimneys,  and  the  specially  provided  founda- 
tions and  settings  of  such  boilers  and  appurtenances;  also  iron  smokestacks. 
Tt  also  includes  mechanical  stokers  and  other  like  apparatus  for  regulating 
the  supply  of  fuel,  etc.,  feed  and  hot  water  heaters  and  economizers,  injectors, 
filters,  feed  pumps,  blower  engines,  coal  conveyors,  ash  conveyors,  water  pipes, 
steam  traps,  drains,  and  separators,  and  pipes  for  conducting  steam  from 
the  boiler  to  the  engine,  to  condensers,  or  to  the  gas  generators,  exhaust 
pipes,  etc.  It  does  not  include  steam  pipes  whose  primary  purpose  is  th« 
heating  of  buildings. 

G141b.  Steam  Engines. 

Charge  to  this  account  the  cost  of  all  steam  engines  devoted  to  use  as 
prime  movers  in  gas  works.  This  includes  the  specially  provided  founda- 
tions and  settings  of  such  engines.  The  engine,  whether  reciprocating  or 
rotary  (such  as  steam  turbines),  shall  be  considered  to  include  the  throttle 
or  inlet  valve  and  the  governor;  also  condensers  and  air  pumps,  but  not  the 
steam  pipe  leading  from  the  boiler,  nor  the  exhaust  pipe. 

G143b.  Gas  Engines. 
Charge  to  this  account  the  cost  of  all  gas  engines  devoted  to  use  a3 
prime  movers  in  gas  works  and  stations.  This  includes  the  specially  provided 
foundations  and  settings  of  such  engines.  The  engine  includes  the  inlet  valve 
and  governor,  and  ignition  and  starting  apparatus,  but  not  the  pipe  lead- 
ing from  the  gas  holder,  nor  the  exhaust  pipe. 

G145.  Miscellaneous  Power  Plant  Equipment. 
Charge  to  this  account  the  cost  of  all  miscellaneous  power  plant  equipment 
at  gas  works  which  is  not  includible  in  any  of  the  foregoing  accounts.  This 
includes  such  mechanical  apparatus  as  belts,  pulleys,  hangers,  countershafts, 
and  other  apparatus  intermediary  between  the  prime  mover  and  the  apparatus 
operated,  cranes,  hoists,  etc.,  and  machine  tools  and  such  other  tools  at 
power  plants  as  are  proper  to  be  capitalized,  etc. 

223.  Benches  and  Retorts. 
Charge  to  this  account  the  cost  of  all  benches  and  retorts  devoted  to  the 
production  of  coal  gas.    This  includes  the  cost  of  specially  provided  foundations 
and  settings  and  auxiliary  piping,  including  foul  and  hydraulic  mains. 

G143a.  Water  Gas  Sets  and  Accessories. 
Charge  to  this  account  the  cost  of  sets  and  accessories  devoted  to  the  pro- 
duction of  water  gas,  including  the  cost  of  specially  provided  foundations  and 
settings  for  such  sets.    This  account  includes  not  only  generators,  carbureters, 


14  Public  Service  Commission,  Second  District 

super  heaters,  seals,  and  piping  connected  therewith,  etc.,  but  also  blast  appa- 
ratus, oil  and  steam  supplying  apparatus,  oil  heaters,  etc.  It  does  not  include 
pipes  whose  primary  purpose  is  the  warming  of  buildings. 

224.  Purification  Apparatus. 

Charge  to  this  account  the  cost  of  all  purification  apparatus,  such  as 
condensers,  washers,  scrubbers,  purifiers,  tar  extractors,  etc.,  and  their  ancil- 
lary apparatus  and  piping,  including  the  cost  of  specially  provided  foundations 
and  settings. 

225.  Accessory  Equipment  at  Works. 

Charge  to  this  account  the  cost  of  all  equipment  at  works  and  holder 
stations  which  is  not  includible  under  any  of  the  foregoing  accounts.  This 
includes  exhausters,  station  meters,  governors,  etc.;  apparatus  for  charging 
retorts;  conveyors  for  disposing  of  coke  and  other  products  and  residuals; 
tar  and  ammonia  apparatus,  pumps,  pipes,  tanks,  etc. 

231.  Trunk  Lines  and  Mains. 
Charge  to  this  account  the  cost  of  all  trunk  lines  and  mains  in  place. 
This  includes  all  pipe  lines  from  the  yard  connections  to  district  holders,  and 
from  the  works  governor  to  the  beginnings  of  services,  including  the  cost  of 
all  trenching,  etc.,  necessary  to  the  placing  of  the  pipe,  and  the  cost  of  filling 
trenches  and  restoring  the  surface  to  its  former  condition  or  to  that  re- 
quired by  the  municipal  authorities  at  the  time  the  line  is  installed. 

232.  Gas   Services. 

Charge  to  this  account  the  cost  of  the  corporation's  property  in  service 
pipes  and  appurtenances  in  or  leading  to  consumers'  premises.  This  in- 
cludes the  cost  of  material  in  place,  cost  of  trenching  for  placing  services, 
and  of  filling  trenches  and  restoring  surface  to  proper  condition. 

Note  A. —  When  consumers  are  required  to  pay  some  or  all  of  the  cost  of  services, 
only  that  portion  of  the  cost  not  chargeable  to  the  consumer  is  chargeable  to  this 
account ;  in  all  cases  where  only  a  portion  of  the  cost  of  the  service  is  charge- 
able to  this  account  the  entry  in  this  account  shall  show  the  entire  cost  of  the 
service  as  well  as  the  amount  charged  to  this  account. 

Note  B. —  Where  services  extending  only  from  main  to  curb  (or  to  lot  line)  are 
placed  before  actually  required  for  the  purpose  of  supplying  consumers,  the  entry  of 
cost  must  show  that  fact.  Such  services  will  be  required  to  be  separately  reported 
in  the  annual  reports  of  corporations  to  the  Public  Service  Commission. 

Note  C. —  Cost  of  renewing  or  modifying  services  shall  not  be  charged  to  this 
account. 

233.  Gas  Meters. 

Charge  to  this  account  the  cost  of  the  corporation's  property  in  all  meters 
and  appurtenances  used  in  measuring  the  gas  delivered  to  consumers. 

Note  A. —  This  account  does  not  include  the  cost  of  the  corporation's  meters  at 
the  works  ;  such  cost  shall  be  charged  to  account  No.  225,  "Accessory  Equipment  at 
Works,"  or  to  a  sub-account  thereunder. 

Note  B. —  Cost  of  setting,  removing,  or  re-setting  such  meters  shall  not  be  charged 
to  this  account. 

Note  C. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the 
accounting  corporation  may  also  include  in  this  account  the  cost  of  consumers' 
meters  temporarily  withdrawn  from  service. 

234.  Gas  Meter  Installation. 
Charge  to  this  account  the  labor  and  materials  cost   (exclusive  of  cock  and 
connections)    of   the   first   setting  of  meters  for  determining  the  amount  of 
gns   delivered  to  consumers,  in  case  it  is   the  policy   of  the  corporation  to 
capitalize   the  cost  of  such  selling. 


Accounts  foe  Gas  Corporations         15 

Note  A. —  Cost  of  removing  such  meters  and  of  setting  other  meters  substituted 
for  them  shall  not  be  charged  to  this  account  but  to  account  No.  634a,  "  Gas 
Meter  and  Installation  Work  ".    (See  page  38.) 

Note  B. —  This  account  must  not  include  at  any  time  the  cost  of  installation  of 
a  greater  number  of  consumers'  meters  than  are  actually  in  service. 

235.  Municipal   Street  Lighting   Fixtures    (Gas). 

Charge  to  this  account  the  cost  of  the  corporation's  property  in  the  lamps, 
posts,  and  ancillary  apparatus  and  appliances  used  in  lighting  streets  for  a 
municipal  corporation.  Such  cost  includes  not  only  cost  of  material  but  also 
cost  of  first  setting  and  coupling  up.  It  does  not  include  cost  of  removal 
or  change  of  position. 

Note. —  Where  the  municipality  requires  for  its  special  benefit  the  extension  of 
mains  and  services  for  street  lighting,  such  extensions  may,  so  long  as  used  solely 
for  street  lighting,  be  charged  to  this  account,  provided  a  full  description  of  the 
extensions  so  charged  and  the  amounts  charged  in  respect  thereof  be  filed  with  the 
Public  Service  Commission  on  or  before  the  date  when  the  entry  thereof  is  made 
upon  the  books  of  the  corporation. 

236.  Gas  Engines  and  Appliances. 

Charge  to  this  account  the  cost  of  the  corporation's  property  in  gas  engines 
leased  to  consumers  (including  municipal  corporations),  but  not  of  those  held 
for  purposes  of  sale.  Such  engines  include  all  appliances  for  the  production 
of  mechanical  motion  through  the  consumption  of  gas.  Also  charge  to 
this  account  the  cost  of  the  corporation's  property  in  all  gas  stoves  and 
other  heating  appliances  leased  to  consumers,  but  not  of  those  held  for  pur- 
poses of  sale.  This  includes  stoves,  ranges,  heaters,  hot  plates,  sadirons, 
tailors'  irons  and  gooses,  and  other  like  devices  and  appliances  consuming 
gas  for  the  direct  production  of  heat. 

Note  A. —  The  cost  of  setting  and  connecting  such  engines  and  heating  appliances 
on  the  premises  of  consumers  and  the  cost  of  re-setting  or  of  removal  shall  not  be 
charged  to  this  account. 

Note  B. —  Upon  filing  with  the  Public  Service  Commission  a  notice  thereof,  the  ac- 
counting corporation  may  also  include  in  this  account  the  cost  of  such  gas  engines 
and  appliances   temporarily  withdrawn  from   service. 

237.  Gas  Tools  and  Implements. 

Charge  to  this  account  the  cost  of  all  tools  and  implements  coming  within 
the  scope  of  the  definition  of  fixed  capital  (see  paragraph  4,  page  5,  ante) 
and  not  covered  by  any  of  the  foregoing  equipment  accounts. 

238.  Gas  Laboratory  Equipment. 

Charge  to  this  account  the  cost  of  all  physical  and  chemical  apparatus 
used  in  testing  and  other  technological  work,  and  of  all  equipment  in 
laboratories  used  for  technological  work,  such  as  calorimetry,  photometry, 
chemical  analysis,  and  the  like;  also  all  equipment  for  testing  building  and 
other  materials  used  in  the  engineering  operations  of  the  company. 

Note. —  This  account  does  not  include  the  cost  of  any  chemicals  or  other  supplies, 
such  being  chargeable  to  the  appropriate  suo-account  in  the  account  "  Materials  and 
Supplies";  as  consumed  they  shall  be  charged  thence  to  the  appropriate  expense 
accounts. 

239.  Other  Tangible  Gas  Capital.  , 

Charge  to  this  account  the  cost  of  all  miscellaneous  tangible  gas  capital 
not  elsewhere  provided  for. 

G281.  Engineering  and  Superintendence. 

Charge  to  this  account  all  expenditures  for  services  of  engineers,  drafts- 
men, and   superintendents   employed  on   preliminary   and   construction   work, 


1G  Public  Service  Commission,  Second  District 

and  all  expenses  incident   to  the  work,  when  such  disbursements  can  not  be 
assigned  to  specific  construction. 

Note. —  When  employees  enumerated  ahove  are  engaged  in  work  not  chargeable  to 
construction,  their  pay  and  expenses  shall  be  charged  to  the  specific  work  on  which 
engaged. 

G282.  Law  Expenditures  During  Construction. 

Charge  to  this  account  general  expenditures  of  the  following  nature  in- 
curred in  connection  with  the  construction  of  a  gas  plant:  namely,  the  pay 
and  expenses  of  all  counsel,  solicitors,  and  attorneys,  their  clerks  and 
attendants,  and  expenses  of  their  offices;  printing  briefs,  legal  forms,  testi- 
mony, reports,  etc.;  payments  to  arbitrators  for  the  settlement  of  disputed 
questions;  costs  of  suit  and  payments  of  special  fees,  notarial  fees,  and  wit- 
ness fees;  and  expenses  connected  with  taking  depositions;  also  all  legal 
and  court  expenses. 

When  any  of  the  expenditures  above  enumerated  can  be  charged  directly 
to  the  account  for  which  incurred,  they  shall  be  so  charged  and  not  to  this 
account.  Expenditures  in  connection  with  the  acquisition  of  the  right  of 
way  or  other  land  shall  be  charged  to  account  No.  G110,  "Land  Devoted 
to  Gas  Operations  ".  Law  expenditures  in  connection  with  the  organization 
of  the  corporation  shall  be  charged  to  account  No.  101,  "Organization". 

G283.  Injuries  During  Construction. 
Charge  to  this  account  all  expenditures  incident  to  injuries  to  persons 
when  caused  directly  in  connection  with  construction  of  gas  plant  and 
equipment;  proportion  of  salaries  and  expenses  of  physicians  and  surgeons; 
nursing  and  hospital  attendance,  medical  and  surgical  supplies,  artificial 
limbs,  railroad  and  carriage  fares  for  conveying  injured  persons  and  at- 
tendants; funeral  expenses  (including  payments  to  undertakers)  ;  proportion 
of  pay  and  expenses  of  claim  adjusters  and  their  clerks,  and  pay  and  ex- 
penses of  employees  and  others  called  in  consultation  in  relation  to  the  ad- 
justment of  claims  coming  under  this  head;  also  witness  fees  and  amount 
of  final  judgments. 

G284.  Taxes  During  Construction. 
Charge  to  this  account  all  taxes  and  assessments  levied  and  paid  on  prop- 
erty belonging  to  the  corporation  while  under  construction  and  before  the 
plant  is  opened  for  commercial  operation,  except  special  taxes  assessed  for 
street  and  other  improvements,  such  as  grading,  sewering,  curbing,  guttering, 
paving,  sidewalks,  etc.,  which  shall  be  charged  to  the  account  to  which  the 
property  benefited  is  charged. 

G285.  Miscellaneous  Construction  Expenditures. 

Charge  to  this  account  the  salaries  and  expenses  of  executive  and  general 
officers  of  a  gas  plant  under  construction;  clerks  in  general  offices  engaged 
on  construction  accounts  or  work ;  rent  and  repair  of  general  offices  when 
rented,  with  the  office  expenses;  insurance  during  construction;  also  all 
construction  and  equipment  items  of  a  special  and  incidental  nature  which 
can  not  properly  be  charged  to  any  other  account  in  this  classification. 

Note  A. —  This  account  may  include  a  suitable  proportion  of  store  expenses  when 
such  expenses  are  not  assignable  to  specific  materials. 

Note  B. —  This  account  shall  not  include  any  costs  of  organization,  or  any  costs 
or  discounts  connected  with  the  issue  and  disposal  of  stocks,  funded  debt,  or  other 
securities,  and  commercial  paper. 


Accounts  for   Gas  Corporations  17 

G28G.   Interest  During  Construction. 

Charge  to  this  account  the  interest  accrued  upon  all  moneys  (and  credits 
available  upon  demand)  acquired  for  use  in  connection  with  the  construction 
and  equipment  of  the  property  from  the  time  of  such  acquisition  until  the 
construction  is  ready  for  use.  Interest  receivable  accrued  upon  such  moneys 
and  credits  shall  be  credited  to  this  account.  To  this  account  shall  also 
be  credited  discounts  realized  through  prompt  payment  of  bills  for  materials 
and  supplies  used  in  construction  unless  such  discounts  are  credited  to  the 
particular  bills. 

OHO.  Land  in  Other  Departments. 

Charge  to  this  account  the  cost  of  the  corporation's  interests  in  land 
(exclusive  of  improvements  thereon)  devoted  to  operations  other  than  electric 
operations,  gas  operations,  railroad  operations,  and  street  railroad  operations.1 
Such  cost  includes,  when  assumed  or  when  paid  by  the  purchaser  in  its  own 
behalf,  cost  of  registration  of  title,  cost  of  examination  of  title,  conveyancer's 
and  notary's  fees,  purchasing  agent's  commissions  or  fees,  or  proportion  of 
purchasing  agent's  salary,  taxes  accrued  to  date  of  transfer  of  title,  and  all 
liens  upon  the  title  acquired.  If  at  the  time  of  acquisition  of  such  interest 
in  lands  it  extends  to  buildings  or  other  improvements  thereon,  which  im- 
provements are  devoted  by  the  corporation  to  operations  other  than  the  four 
classes  above  mentioned,  and  the  contract  of  acquisition  does  not  determine 
the  price  of  such  improvements,  they  shall  be  appraised  at  their  fair  cash 
value,  and  such  appraised  value  shall  be  charged  to  the  appropriate  accounts 
and  excluded  from  the  account  "  Land  in  Other  Departments  ".  If  such  im- 
provements are  held  as  investments,  the  cost  (or  appraised  value  at  time  of 
acquisition  of  title  if  the  cost  to  the  corporation  is  not  determined  in  the 
contract  of  acquisition)  shall  be  charged  to  the  appropriate  investment  ac- 
count. If  the  improvements  are  removed  or  wrecked,  the  salvage  (less  the 
cost  of  removal  or  wreckage)  shall  be  excluded  from  the  account  "Land  in 
Other  Departments  ". 

O102.  Franchises    in    Other   Departments. 

Charge  to  this  account  "  the  amount  (exclusive  of  any  tax  or  annual 
charge)  actually  paid  to  the  State  or  to  a  political  subdivision  thereof  as 
the  consideration  for  the  grant  of  such  franchise  or  right  "  as  is  necessary 
to  the  conduct  of  the  corporation's  operations  other  than  electric,  gas,  rail- 
road, and  street  railroad. 

O103.  Patent-rights  in  Other  Departments. 

Charge  to  this  account  the  cost  of  all  rights  (having  a  life  of  more  than 
one  year  from  the  date  when  placed  in  service)  acquired  by  the  corporation 
in  or  under  valid  patents  granted  by  the  United  States  to  inventors  for  in- 
ventions and  discoveries  which  are  necessary  to  the  economical  conduct  of 
the  corporation's  operations  other  than  electric,  gas,  railroad,  and  street  rail- 
road. 


1  Note. —  Electric  Capital,,  Railroad  Capital,  and  Street  Railroad  Capital. — 
For  the  accounts  to  which  shall  be  charged  the  cost  of  capital  devoted  to  electric 
operations,  see  the  Uniform  System  of  Accounts  for  Electrical  Corporations ;  for 
steam  railroad  operations,  see  the  Uniform  System  of  Accounts  for  Expenditures 
for  Road  and  Equipment,  etc.,  as  established  for  Steam  Railroad  Corporations  by 
the  Public  Service  Commission  ;  and  for  electric  railroad  and  street  railroad  opera- 
tions, see  the  Uniform  System  of  Accounts  for  Street  Railroad  Corporations. 


18  Public  Service  Commission,  Second  District 

O104.  Other  Intangible  Capital  in  Other  Departments. 
Charge  to  this  account  the  cost  of  all  property  of  the  corporation  coming 
within   the    definition    of   intangible    capital   devoted   to    its    operations    other 
than   electric,    gas,    railroad,    and    street    railroad,    and    not    includible    under 
any  of  the  foregoing  accounts. 

O120.  Tangible  Capital  in  Other  Departments. 
Charge  to  this  account  the  cost  of  all  property  of  the  corporation  coming 
within  the  definition  of  tangible  capital  devoted  to  its  operations  other  than 
electric,  gas,  railroad,  and  street  railroad. 

25.  Floating  Capital  divided  into  two  groups. —  Floating  capital  is  divided 
into  two  great  groups,  of  which  the  first  is  herein  called  Materials  and  Sup- 
plies, and  the  second,  Current  Assets. 

26.  Definitions  of  Floating  Capital  accounts. —  In  the  following  definitions 
the  letters  and  figures  prefixed  to  the  titles  of  the  accounts  are  no  part  of 
the  titles  and  are  inserted  merely  for  convenience  of  reference: 

G10.  Materials  and  Supplies. 

Charge  to  this  account  the  cost  (including  transportation)  of  all  materials 
and  supplies  acquired  by  the  corporation,  regardless  of  whether  the  same 
are  intended  to  be  consumed  in  construction  or  in  operation,  or  later  to  be 
sold.  Where  discounts  recovered  through  prompt  payment  are  not  credited 
to  the  particular  bills,  the  cost  at  which  such  materials  and  supplies  shall 
be  charged  shall  be  the  invoice  cost,  and  any  discounts  recovered  through 
prompt  payment  of  bills  for  such  materials  and  supplies  shall  be  credited  to 
account  No.  G286,  "  Interest  During  Construction,"  or  to  account  No.  GU852, 
"  Miscellaneous  Adjustments  —  Balance,"  according  as  such  materials  and 
supplies  are  intended  for  construction  or  for  operation. 

The  scrap  value  of  things  retired  from  service  shall  be  charged  to  an  appro- 
priate sub-account  in  this  account  while  such  things  remain  the  property  of 
the  corporation.  If  such  scrap  value  is  not  known  and  can  not  readily  be 
determined  it  shall  be  estimated,  and  errors  in  such  estimates  when  deter- 
mined shall  be  adjusted  through  the  accounts  involved  if  during  the  year  in 
which  the  estimates  were  made ;  if  later,  then  through  the  "  Corporate  Surplus 
or  Deficit "  account. 

Inventories  of  materials  and  supplies  shall  be  taken  at  least  annually,  and 
any  shortages  or  overages  disclosed  by  such  inventories  shall  be  credited  or 
debited  to  this  account  and  debited  or  credited  to  the  operating  expense  ac- 
count No.  GC852,  "  Miscellaneous  Adjustments  —  Balance,"  in  case  they  can 
not  be  assigned  to  specific  accounts.  Shortages  may,  however,  be  charged 
directly  to  "  Corporate  Surplus  or  Deficit ".  Where  such  materials  and  sup- 
plies have  been  used  in  construction,  a  suitable  proportion  of  such  shortages 
or  overages  may  be  debited  or  credited  to  account  No.  G285,  "Miscellaneous 
Construction   Expenditures  ". 

Note. —  It  is  not  required  that  the  transportation  element  of  cost  shall  be 
assigned  with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of 
material  or  supply.  Where  a  single  transportation  item  covers  a  multitude  of 
things  the  portion  of  the  expense  not  assigned  to  specific  things  should  be  charged 
to  the  same  account  that  store  expenses  are  charged  to. 

1.  Cash. 
Charge  to  this  account  all  money  coming  into  the  possession  of  the  corpora 
tion  and  in  which  the  corporation  has  the  beneficial  interest.     This  includes 


Accounts  for  Gas  Corporations  19 

coin  of  the  United  States,  United  States  treasury  notes,  gold  and  silver  cer- 
tificates and  greenbacks,  and  bank  bills  payable  to  bearer.  Also  charge  to  it 
all  bank  credits,  checks  and  drafts  receivable,  subject  to  satisfaction  or 
transfer  upon  demand  (whether  payable  to  bearer  or  to  order).  Credit  this 
account  with  all  cash  disbursements  of  the  corporation. 

2.  Bills   Receivable. 

Charge  to  this  account  the  cost  of  all  bills  receivable  (except  as  below 
provided)  which  are  the  property  of  the  corporation  and  upon  which  solvent 
concerns  are  liable  or  which  are  sufficiently  secured  to  be  considered  good. 
This  account  includes  demand  notes,  drafts,  etc.,  issued  by  others  than  banks, 
and  time  notes,  drafts,  etc.,  by  whomever  issued.  This  account  does  not  in- 
clude investments   (for  which  see  below)  ;  nor  does  it  include  interest  coupons. 

3.  Accounts  Receivable. 
Charge  to  this  account  all  amounts  owing  to  the  corporation  upon  ac- 
counts with  solvent  concerns  (other  than  banks) ;  also  the  cost  of  all  accounts 
and  claims  upon  which  responsibility  is  acknowledged  by  solvent  concerns  or 
which  are  sufficiently  secured  to  be  considered  good,  and  of  all  judgments 
against  solvent  concerns  where  the  judgment  is  not  appealable  or  suspended 
through  appeal.     This  account  does  not   include  negotiables. 

4.  Interest  and  Dividends  Receivable. 
Whenever  the  income  account  is  stated  the  appropriate  sub-account  therein 
shall  be  credited  and  this  account  shall  be  charged  with  all  accrued  but 
not  yet  collected  interest  upon  all  commercial  paper  and  accounts  considered 
collectible  held  by  or  for  the  benefit  of  the  corporation:  also  all  dividends 
declared  or  guaranteed  by  solvent  concerns  but  not  yet  collected,  the  right  to 
which  is  in  the  corporation. 

5.  Other  Current  Assets. 
Charge  to  this  account  the  cost  of  all  current  assets  of  the  corporation  which 
are  not  includible  under  any  of  the  last  four  foregoing  accounts.  By  current 
assets  are  meant  only  those  things  which  are  readily  convertible  into  money 
and  which  are  held  with  the  intent  of  being  presently  converted  into  money 
and  not  as  investments. 

27.  Investments  defined. —  By  Investments,  as  here  used,  are  meant  all  prop- 
erties acquired  not  for  use  in  present  operations,  but  as  a  means  of  obtaining 
or  exercising  control  over  other  corporations,  or  for  income  to  be  derived 
from  them,  or  for  a  rise  in  value,  or  for  devotion  to  future  operations  at  a 
time  when  it  seems  probable  that  they  can  not  be  so  advantageously  acquired 
as  at  the  time  of  actual  acquisition.  By  bound  investments  are  meant  those 
held  subject  to  a  lien  of  some  character;  by  free  investments  are  meant  those 
held  free  of  all  liens. 

300.  Investments. 

The  cost  of  the  corporation's  title  to  any  property  held  as  an  investment 
shall  be  charged  to  an  account  entitled  "  Investments  ". 

Note. —  In  the  annual  reports  to  be  made  to  the  Public  Service  Commission  by 
the  corporations  and  other  persons  engaged  in  gas  operations,  investments,  whether 
bound  or  free,  will  be  required  to  be  classified  with  at  least  the  following  detail  : 
Bound  investments  will  be  required  to  be  divided  into  the  three  classes  :  "  Mort- 
gaged or  Pledged  Investments,"  "  Contractual  Fund  Investments,"  and  "  Other  Bound 


20  Public  Service  Commission, 'Second  District 

Investments ".  Each  of  these  three  classes,  and  the  class  "  Free  Investments," 
will  be  required  to  be  subdivided  into  the  following:  Funded  Debt  of  Controlling 
Corporations,  Funded  Debt  of  Affiliated  Corporations,  Funded  Debt  of  Controlled 
Corporations,  Stocks  of  Controlling  Corporations,  Stocks  of  Affiliated  Corporations, 
stocks  of  Controlled  Corporations,  Advances  to  Controlled  Corporations,  Funded 
Debt  of  Other  Corporations,  Stocks  of  Otber  Corporations,  Land,  Improvements  on 
land,  and  Other  Investments. 

28.  Special  Deposits  defined. —  By  Special  Deposits,  as  here  used,  are  meant 
amounts  of  money  and  bank  credits  in  the  hands  of  fiscal  or  other  agents 
of  the  corporation  for  the  payment  of  coupons,  dividends,  or  other  special 
purposes.  Credits  at  banks  subject  to  check  of  the  corporation  or  its  agents 
for  general  purposes,  deposits  at  banks  whether  withdrawable  at  pleasure 
or  after  a  specified  time,  amounts  of  money  in  safety  deposit  vaults,  etc.,  so 
long  as  they  are  available  for  general  purposes  of  the  corporation,  shall  be 
excluded  herefrom. 

311.  Coupon  Special  Deposits. 
Charge  to  this  account  all  moneys  and  bank  credits  specially  deposited  in 
the  hands  of  fiscal  agents  or  other  agents  of  the  corporation  for  the  payment 
of  interest  coupons  when  presented.  Such  coupons  when  paid  from  such 
deposits  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
matured  interest  account.  Payments  to  trustees  (or  other  agents)  of  the 
holders  of  bonds  or  other  securities  of  the  interest  accrued  thereon  which  op- 
erate under  the  terms  of  the  securities  (or  of  mortgages  supporting  such 
securities)  as  a  release  of  the  paying  corporation  from  further  liability  for 
such  interest  shall  not  be  charged  to  this  account,  but  to  the  appropriate 
"  Interest  Accrued  "   account. 

312.  Dividend  Special  Deposits. 

Charge  to  this  account  all  moneys  and  bank  credits  specially  deposited  in 
the  hands  of  fiscal  agents  or  other  agents  of  the  corporation  for  the  payment 
of  dividends  upon  the  corporation's  stocks.  Such  dividends  when  paid  from 
such  deposits  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
dividend  account. 

313.  Other  Special  Deposits. 

Charge  to  this  account  all  moneys  and  bank  credits  deposited  in  the  hands 
of  fiscal  agents  or  other  agents  of  the  corporation  for  other  special  purposes 
than  the  payment  of  interest  coupons  and  dividends.  Charges  to  this  account 
shall  specify  the  purpose  for  which  the  deposit  is  made.  When  such  purposes 
are  satisfied  this  account  shall  be  credited  with  the  amount  specially  deposited 
to   provide  such  satisfaction. 

29.  Prepayments. —  When  payments  for  taxes,  insurance,  rents,  and  the  like 
are  made  in  advance  of  the  actual  accrual  thereof,  the  amount  of  the  advance 
payment  shall  be  charged  to  the  appropriate  account  in  this  group.  As  such 
taxes,  etc.,  accrue,  the  appropriate  prepayment  account  shall  be  credited  and 
the  appropriate  expense  or  other  income  account  shall  be  charged. 

Note. —  By  the  accrual  of  taxes,  insurance,  rents,  etc.,  is  meant  tbeir  accumula- 
tion when  considered  as  spread  uniformly  over  the  period  to  which  they  apply. 
Thus,  if  the  rent  fixed  by  contract  of  lease  for  a  certain  property  is  $000  for  a 
calendar  year,  tbis  accrues  at  tbe  rate  of  $50  each  month  (unless  it  is  desired  to 
base  the  accrual  on  days,  when  of  course  the  varying  lengths  of  tbe  months  would 
require  to  be  considered),  regardless  of  the  actual  times  when  the  rent  matures; 
$50  should  thus  (if  the  rent  has  been  prepaid)  be  credited  each  month  to  the 
account  "  Prepaid  Rents,"  and  concurrently  charged  to  the  appropriate  account 
in  the  "  Income  "  account.     Similarly  in  the  case  of  other  prepayments. 


Accounts  for  Gas  Corporations         21 

321.  Prepaid  Taxes. 

When  taxes  are  paid  in  advance  of  their  accrual,  the  amount  prepaid  shall 
he  charged  to  this  account.  As  the  tuxes  thus  prepaid  accrue,  they  shall  be 
credited  at  monthly  intervals  to  this  account  and  charged  to  the  appropriate 
taxes  account.  This  account  must  not  include  any  so  called  taxes,  like  water 
taxes,  drainage  taxes,  fire  taxes,  etc.,  which  are  payments  for  special  benefits 
received.  Such  payments  for  special  benefits,  where  finally  chargeable  to 
operating  expenses,  must,  when  prepaid,  be  charged  to  the  account  "  Other 
Prepayments  ". 

322.  Prepaid  Insurance. 

When  premiums  on  insurance  policies  are  paid  in  advance  of  their  accrual, 
the  amount  prepaid  (whether  paid  in  cash  or  by  the  issue  of  notes  or  other 
negotiable  paper)  shall  be  charged  to  this  account.  As  such  premiums  accrue, 
they  shall  be  credited  at  monthly  intervals  to  this  account  and  charged  to  the 
appropriate  expense  account. 

323.  Prepaid  Rents. 
When  rents  are  paid  in  advance  of  the  enjoyment  of  the  term,  the  amount 
prepaid  (whether  paid  in  casli  or  by  the  issue  of  notes  or  other  negotiable 
paper)  shall  be  charged  to  this  account.  As  the  term  is  consumed,  this 
account  shall  be  credited  at  monthly  intervals  and  the  appropriate  rent 
account  in  the  income  account  shall  be  charged. 

324.  Other   Prepayments. 

When  prepayments  are  made  for  any  other  thing  than  taxes,  insurance,  and 
rents,  above  provided  for,  such  prepayments  shall  be  charged  to  this  account; 
and  as  the  purpose  of  the  prepayment  is  satisfied,  proportionate  amounts  shall 
be  credited  monthly  to  this  account  and  charged  to  the  appropriate  expense  or 
income  account. 

30.  Suspense. —  When  any  expenditure  is  made,  the  appropriate  disposition 
of  which  is  not  yet  determinable,  or  when  any  loss  occurs  which  under  the 
rules  of  the  Public  Service  Commission  may  be  spread  over  a  period  of  time, 
or  when  any  debit  made  for  any  other  reason  may  be  amortized  through 
charges  made  to  expense  or  other  income  accounts  at  intervals  over  a  period 
of  time,  such  expenditure,  loss,  or  other  debit  shall,  except  as  herein  other- 
wise directed,  be  charged  to  an  appropriate  account  in  this  group  of  accounts. 

Note. —  By  "  amortization  "  of  any  charge  or  credit  is  meant  its  gradual  ex- 
tinction. The  word  is  broader  than  the  word  "  depreciation,"  since  the  latter  U 
restricted  ordinarily  to  tangible  property.  The  word  "  depreciation  "  also  imports 
more  of  the  idea  of  fluctuating  value  and  is  complicated  somewhat  with  the  question 
of  cost  of  replacement  at  market  prices.  Because  it  is  considered  unnecessary  in 
connection  with  the  gradual  consumption  or  expiration  of  life  of  capital  to  con- 
sider the  question  of  cost  of  replacement  until  the  replacement  is  actually  made,  at 
which  time  the  cost  of  replacement  is  duly  charged  to  the  appropriate  account, 
and  because  provision  is  necessary  for  the  gradual  extinction  of  certain  charges 
(such  as  those  for  some  kinds  of  capital,  those  for  extraordinary  casualties,  for  , 
discount  on  debt,  etc.)  to  which  the  term  "  depreciation  "  does  not  well  apply,  it 
is  considered  advisable  to  use  the  term  "  amortization  "  in  connection  with  the 
extinction  of  such  charges,  and  of  certain  corresponding  credits,  such  as  premiums 
on  debt  outstanding. 

331.  Unamortized  Debt  Discount  and  Expense. 
When   funded  debt  securities  and  other  evidences  of  indebtedness  are  dis- 
posed of  for  a  consideration  whose  cash  value  is  less  than  the  sum  of  the  par 


22  Public  Service  Commission,  Second  District 

value  of  the  securities  or  other  evidences  of  indebtedness  and  the  interest 
thereon  accrued  at  the  time  the  transfer  takes  place,  the  excess  of  such  sum 
of  the  par  value  and  accrued  interest  over  the  cash  value  of  the  consideration 
received  shall  be  charged  to  this  account.  To  this  account  shall  also  be 
charged  all  expense  connected  with  the  issue  and  sale  of  evidences  of  debt, 
such  as  fees  for  drafting  mortgages  and  trust  deeds,  fees  and  taxes  for  record- 
ing mortgages  and  trust  deeds,  cost  of  engraving  and  printing  bonds,  certifi- 
cates of  indebtedness,  and  other  commercial  paper  having  a  life  of  more  than 
one  year,  fees  paid  trustees  provided  for  in  mortgages"  and  trust  deeds,  fees 
and  commissions  paid  underwriters  and  brokers  for  marketing  such  evidences 
of  debt,  and  other  like  expense.  At  or  before  the  close  of  each  fiscal  period 
thereafter,  a  proportion  of  such  discount  and  expense  based  upon  the  life  of 
the  security  to  maturity  shall  be  credited  to  this  account  and  charged  to  ac- 
count No.  928,  "Amortization  of  Debt  Discount  and  Expense,"  in  "  Income  " 
account.  Such  discount  and  expense  may,  if  desired,  be  amortized  more  rapidly 
through  charges  of  all  or  any  part  of  it,  either  at  the  time  of  issue  or  later, 
to  the  account  "  Other  Deductions  from  Surplus  ". 

332.  Other   Suspense. 

To  this  account  shall  be  made  all  debits  not  elsewhere  provided  for  and 
the  proper  final  disposition  of  which  is  uncertain.  This  will  include  all  such 
matters  as  expense  of  preliminary  surveys,  plans,  investigations,  etc.,  made 
for  determining  the  feasibility  of  projects  under  contemplation.  Should  any 
such  project  later  be  carried  to  completion,  such  amounts  shall  be  credited 
to  this  account  and  charged  to  the  proper  capital  account;  should  it  be 
abandoned,  such  amounts  shall  be  charged  to  "  Corporate  Surplus  or  Deficit  ". 

When  the  proper  disposition  of  any  matter  charged  to  this  account  is  deter- 
mined, it  shall  be  credited  to  this  account  and  charged  to  the  appropriate 
account. 

31.  Securities   Actually   Issued   and   Later   Re-acquired. —  For   the   case   of 

securities  actually  issued  by  the  corporation  and  later  re-acquired  by  it,  the 
following  account  is  provided: 

340.  Re-acquired  Securities. 
When  securities,  whether  funded  debt  or  stocks,  have  been  actually  issued 
to  bona  fide  holders  for  value  (or  after  such  issue  by  another  corporation 
have  been  assumed  by  the  accounting  corporation),  and  after  such  issue  (or 
assumption)  have  been  acquired  by  the  corporation  under  circumstances  which 
require  that  they  shall  not  be  treated  as  paid  or  retired,  they  shall  be  charged 
at  face  values  to  this  account. 

32.  Debt  defined. —  The  word  debt,  as  here  used,  covers  all  absolute  obliga- 
tions to  pay  money  at  a  definite  time  or  times,  or  at  a  time  or  times  which 
are  capable  of  being  made  definite  by  demand  or  other  act  of  the  creditor. 
It  does  not  cover  contingent  obligations,  such  as  obligations  to  pay  rent  for 
future  enjoyment  of  the  term,  liabilities  of  indorsers  upon  paper  not  yet 
defaulted,  etc. 

Debt  is  divided  into  Funded  Debt  and  Unfunded  Debt. 

33.  Funded  Debt  defined. —  Funded  Debt  comprises  all  debt  which,  by  the 
terms  of  its  creation  does  not  mature  until  more  than  one  year  after  date  of 
creation. 


Accounts  for  Gas  Corporations         23 

34.  Unfunded  Debt  defined. —  Unfunded  Debt  comprises  all  debt  which  by 
the  terms  of  its  creation  matures  one  year  or  less  after  the  date  of  creation 
or  after  demand. 

35.  Funded  Debt  accounts. —  Funded  debt  shall  be  divided  in  the  accounts 
into  classes,  such  classes  being  determined  by  the  four  characteristics:  (1) 
mortgage  or  other  lien  or  security  therefor,  (2)  rate  of  interest,  (3)  interest 
dates,  and  (4)  date  of  maturity.  A  separate  sub-account  shall  be  raised 
for  each  such  class  of  funded  debt,  and  no  two  amounts  of  debt  not  agreeing 
in  respect  of  all  four  of  the  characteristics  above  named  shall  be  included  in 
the  same  sub-account.  The  title  of  each  sub-account  of  funded  debt  shall 
express  the  four  characteristics  above  stated,  that  is  to  say:  mortgage  or 
other  lien  or  security,  rate  of  interest,  dates  of  maturity  of  interest,  and 
date  of  maturity  of  principal;  as  e.  g.,  "First  Mortgage  5%  QF  10,  Aug.  10, 
1928,"  which  means  funded  debt,  secured  by  the  company's  first  mortgage, 
bearing  interest  at  the  rate  of  5  per  cent,  per  annum,  interest  maturing 
quarterly  on  February  10th,  May  10th;  August  10th,  and  November  10th  of 
each  year,  principal  maturing  August  10,  1928. 

Where  any  portion  of  the  funded  debt  rests  only  on  the  general  credit  of 
tlif  corporation  and  is  not  specially  secured  or  supported  by  lien  of  any 
character,  it  shall  for  the  purposes  of  these  accounts  be  known  as  a  "  deben- 
ture ".  "  Debentures  "  thus  include  promissory  notes  unsecured  by  mortgage 
or  other  lien,  also  those  securities  commonly  known  as  "  plain  bonds  ". 

To  the  appropriate  sub-account  in  "  Funded  Debt "  shall  be  credited  when 
issued  the  par  value  of  the  amount  of  evidences  of  funded  indebtedness  issued. 
The  entry  shall  show  not  only  the  amount  issued  but  the  purpose  for  which 
issued,  and  shall  make  intelligible  reference  to  the  book,  page,  and  account 
whereon  are  shown  any  discounts  or  premiums  realized  on  the  amount  issued. 
If  the  consideration  received  for  the  issue  is  anything  else  than  money,  the 
entry  shall  show  further  the  principal  to  whom  issued,  and  shall  describe 
with  sufficient  particularity  to  identify  it  the_  actual  consideration  received 
for  the  issue.  If  the  issue  in  any  case  is  to  an  agent  of  an  undisclosed  prin- 
cipal, the  name  and  business  address  of  such  agent  and  the  fact  of  his  agency 
shall  be  shown  in  the  entry. 

36.  Unfunded  Debt  accounts. —  The  accounts  for  unfunded  debt  are  defined 
as  follows: 

351.  Taxes  Accrued. 

Credit  to  this  account  at  the  close  of  each  month  the  taxes  accrued  during 
the  month,  and  make  corresponding  charges  to  the  appropriate  "  Taxes " 
account.  Credits  to  the  account  "  Taxes  Accrued  "  will  necessarily  be  based 
upon  estimate  until  the  amount  of  tax  levied  for  the  tax  period  is  known; 
such  estimates  shall  be  based  upon  the  best  data  available,  and  as  soon  as 
the  amount  of  tax  for  the  period  is  known  the  account  involved  shall  be 
adjusted  to  conform.  When  any  tax  is  paid  it  shall  be  charged  to  this 
account  and  credited  to  "  Cash  "  or  other  suitable  account. 
352.  Receiver's  Certificates. 

When  any  receiver  acting  under  the  orders  of  a  competent  court  is  in  pos- 
session of  the  property  of  the  corporation  and  under  the  orders  of  such  court 
issues  certificates  of  indebtedness  chargeable  upon  such  property,  the  par 
value  of  such  certificates  shall  be  credited  to  this  account.  Interest  accruing 
upon  such  certificates  shall  also  be  credited  monthly  to  this  account. 


21  Public  Service  Commission,  Second  District 

353.  Judgments  Unpaid. 

When  any  judgment  of  indebtedness  is  rendered  by  a  court  of  competent 
jurisdiction  against  the  corporation,  or  any  fine  or  penalty  requiring  the 
payment  of  money  is  assessed  by  such  a  court  against  the  corporation,  and  no 
appeal  accompanied  by  stay  of  execution  has  been  taken  therefrom  within 
the  time  allowed  by  law  for  such  appeal,  the  amount  of  such  judgment  shall 
be  credited  to  this  account,  and  the  entry  shall  designate  the  action  or  suit 
as  a  consequence  of  which  such  judgment  is  pronounced  or  such  fine  or  penalty 
assessed.  The  designation  of  the  action  or  suit  shall  show  the  court,  the 
term  thereof,  the  parties,  and  the  character  of  the  action  or  suit.  Interest 
accruing  upon  any  such  judgment  shall  be  credited  monthly  to  this  account. 

Note. —  In  case  of  appeal  and  affirmance  in  whole  or  in  part  from  which  judg- 
ment of  affirmance  a  further  appeal  lies,  the  same  rule  shall  apply  as  upon  entry 
of  original  judgment. 

354.  Interest  Accrued. 

Credit  to  this  account  at  the  close  of  each  month  the  interest  accrued 
during  the  month  upon  indebtedness  of  the  corporation.  When  such  interest 
is  paid  it  shall  be  charged  to  this  account  and  credited  to  "  Cash  "  or  other 
suitable  account. 

The  account  "  Interest  Accrued  "  does  not  include  interest  on  judgments, 
nor  that  upon  receiver's  certificates.  The  interest  accruing  on  any  judgment 
against  the  corporation  or  upon  any  receiver's  certificate  shall  be  credited 
to  the  account  to  which  such  judgment  or  receiver's  certificate  stands  credited. 

Note. —  When  coupon  interest  matures  it  should  be  transferred  from  the  sub- 
account "  Unmatured  Coupon  Interest  Accrued "  to  the  sub-account  "  Coupon  In- 
terest Matured  ".  When  such  interest  is  paid  out  of  coupon  special  deposits  the 
sub-account  "  Coupon  Interest  Matured "  should  be  charged  and  the  account 
"Coupon  Special  Deposits"  credited. 

355.  Dividends   Declared. 
When   any   dividend   is   declared   it   shall   be   credited   to   this   account   and 
here  remain  until  it  is  paid,  when  it  shall  be  charged  to   this  account  and 
credited  to  "  Cash  "  or  other  suitable  account. 

356.  Bills  Payable. 
When  any  note,  draft,  or  other  bill  payable  which  matures  not  later  than 
one  year  after  date  of  issue  (or  of  demand),  or  after  assumption  by  the 
corporation  of  primary  liability  thereon,  is  issued  or  assumed,  the  par  value 
thereof  shall  be  credited  to  this  account,  and  when  it  is  paid  it  shall  be 
charged  to  this  account  and  credited  to  "  Cash  "  or  other  suitable  account. 

G357a.     Consumers'  Deposits  —  Gas. 

Credit  to  this  account,  as  such  deposits  are  made,  all  cash  deposited  with  the 
corporation  by  consumers  as  security  for  the  payment  of  gas  bills.  De- 
posits refunded  shall  be  charged  to  this  account  and  credited  to  "  Cash  ". 
Deposits  applicable  to  uncollectible  or  worthless  gas  bills  shall,  at  the  close 
of  the  fiscal  year  (or  earlier,  at  the  option  of  the  accounting  corporation), 
be  credited  to  the  account  of  the  consumer  involved  and  debited  to  this 
account. 

357b.  Other  Accounts   Payable. 

Credit  to  this  account  when  incurred  all  liabilities  of  the  corporation  upon 
open  accounts,  except  those  provided  for  in  the  foregoing  account  "  Con- 
sumers' Deposits  ". 


Accounts  for  Gas  Corporations  25 

358.  Other  Unfunded  Debt. 
Credit    to   this   account   at   face  value   all    unfunded   debt   upon   which   the 
corporation  is  liable  and  which  is  not  elsewhere  provided  for. 

37.  Reserves. —  Reserves  shall  te  classified  as  Permanent  and  Temporary. 

38.  Permanent  Reserves  denned. —  By  Permanent  Reserves  are  meant  those 
that  must  be  maintained  intact  during  the  life  of  the  corporation.  Permanent 
reserves  shall  be  classified  into  the  two  classes:  Premiums  on  Stocks  and 
Other  Permanent   Reserves. 

371.  Premiums  on  Stocks. 

Premiums  on  stocks  shall  be  sub-classified  with  respect  to  the  several  classes 
of  stocks,  for  definitions  of  which  see  accounts  under  the  head  "  Stocks  ". 
A  sub-account  shall  be  kept  for  each  particular  class  of  stocks,  and  such 
sub-accounts  shall  be  severally  entitled: 

Premiums  on  Debenture  Stocks, 

Premiums  on  First  Preferred  Stocks, 

Premiums  on  Second  Preferred  Stocks,  etc.,  and 

Premiums  on  Common  Stocks. 

When  a  premium  is  realized  upon  an  issue  of  any  particular  class  of  stock, 
such  premium  shall  be  credited  to  the  sub-account  above  provided  for  such 
class  of  stock,  and  such  credit  shall  remain  in  such  account  so  long  as  such 
stock  remains  outstanding.  By  the  premium  realized  (as  the  words  are  above 
used)  is  meant  the  excess  of  the  actual  money  value  (at  the  time  of  issue 
of  the  stock)  of  the  consideration  received  for  such  issue  over  the  par  value 
of  the  amount  of  stock  issued.  If  the  stock  is  issued  by  the  corporation  to 
its  treasurer  or  other  agent,  the  excess  of  the  actual  money  value  of  the 
consideration  obtained  by  such  agent  in  exchange  for  such  stock  over  the  par 
value  thereof  shall  be  considered  the  premium  realized. 

372.  Other  Permanent  Reserves. 
Credit  to  this  account  all  reserves  not  above  provided  for  created  to  remain 
intact  until  the  dissolution  of  the  corporation.  A  separate  sub-account  shall 
he  created  for  each  particular  purpose  for  which  a  reserve  is  raised,  and 
the  purpose  of  the  reserve  shall  be  designated  in  the  title  of  the  account 
thereof  and  shall  be  expressed  in  full  in  the  first  entry  in  such  account. 

39.  Temporary  Reserves  defined. —  By  Temporary  Reserves  are  meant  those 
that  are  not  intended  to  remain  intact  during  the  life  of  the  corporation. 
Temporary  Reserves  shall  be  classified  as  Contractual  Reserves  and  Non-con 
tractual  Reserves. 

40.  Contractual  Reserves  defined. —  Contractual  Reserves  are  reserves  neces- 
sitated by  contracts  of  the  corporation,  as  e.  g.,  reserves  to  cover  sinking 
funds  provided  for  in  mortgages,  etc.  A  separate  sub-account  shall  be  raised 
for  each  particular  contractual  reserve,  and  to  such  account  shall  be  credited 
all  appropriations  and  accumulations  made  in  accordance  with  the  contract 
provisions  under  which  such  reserve  is  created.  The  purpose  of  the  reserve 
shall  be  designated  in  the  title  of  the  account  thereof  and  shall  be  expressed 
in  full  in  the  first  entry  in  such  account. 

41.  Non-contractual  Reserves  defined. —  Non-contractual  Reserves  are  such 
temporary  reserves  as  are  raised  without  being  required  under  any  contract. 
Noncontractual  reserves  are  divided  into  Required  and  Optional. 


26.         Public  Service  Commission,  Second  District 

42.  Required  Reserve  accounts.—  Required  reserves  are  provided  for  in  the 
following  accounts: 

374.  Accrued  Amortization  of  Capital. 

Credit  to  this  account  such  amounts  as  are  charged  from  time  to  time  to 
"Operating  Expenses,"  or  other  accounts  to  cover  depreciation  of  plant  and 
equipment,  and  other  amortization  of  capital.  When  any  capital  is  retired 
from  service,  the  original  money  cost  thereof  (estimated  if  not  known,  and 
where  estimated,  that  fact  and  the  facts  upon  which  the  estimate  is  based 
shall  be  stated  in  the  entry),  less  salvage,  shall  (except  as  provided  in  ac- 
count No.  G100,  "Fixed  Capital,  December  31,  1908,")  be  charged  to  this 
account.  The  amount  originally  entered  or  contained  in  the  charges  to  any 
capital  account  in  respect  of  such  capital  so  going  out  of  service  shall  be 
credited  to  such  capital  account,  and  any  necessary  adjusting  entry  made  to 
the  appropriate  sub-account  under  the  account  "  Corporate  Surplus  or 
Deficit ". 

375.  Unamortized  Premium  on  Debt. 

When  funded  debt  securities  or  other  evidences  of  indebtedness  are  dis- 
posed of  for  a  consideration  whose  cash  value  is  greater  than  the  sum  of  the 
par  value  of  such  securities  or  other  evidences  of  indebtedness  and  the  in- 
terest thereon  accrued  at  the  time  the  transfer  takes  place,  the  excess  of 
the  cash  value  of  such  consideration  received  over  the  sum  of  the  par  value 
of  the  securities  or  other  evidences  of  indebtedness  and  the  accrued  interest 
shall  be  credited  to  this  account.  At  monthly  intervals  thereafter  a  propor- 
tion of  such  premium  based  upon  the  life  of  the  security  or  other  evidence  of 
indebtedness  to  maturity  shall  be  charged  to  this  account  and  credited  to 
"Amortization  of  Premium  on  Debt"  in  "Income"  account;  or  at  the  option 
of  the  corporation  the  charge  to  this  account  may  be  delayed  to  a  time  not 
later  than  the  date  of  maturity  of  the  debt,  in  which  case  the  proportion 
applicable  to  the  period  covered  by  the  then  current  income  account  shall  be 
credited  to  the  account  "Amortization  of  Premium  on  Debt,"  and  the  re- 
mainder of  the  credit  shall  be  to  the  account  "  Other  Additions  to  Surplus  ". 
376.  Other  Required  Reserves. 

Credit  to  this  account  all  required  reserves  not  elsewhere  provided  for.  The 
first  entry  of  a  credit  to  this  account  with  respect  to  any  particular  reserve 
shall  show  the  purpose  of  the  reserve,  and  every  subsequent  entry  with  respect 
to  that  reserve  shall  designate  the  reserve  to  which  it  relates. 

43.  Optional  Reserve  accounts. —  Optional  Reserves  are  those  the  creation  of 
which  is  solely  within  the  discretion  of  the  corporation.  For  such  reserves 
the  following  two  accounts  are  provided: 

381.  Casualties  and  Insurance  Reserve. 
When  any  admitted  liability  arises  because  of  loss  or  damage  to  the  prop- 
erty of  others,  or  of  injuries  to  employees  or  other  persons,  the  amount  of 
the  liability  may  (if  not  previously  provided  for  by  insurance  or  self -insur- 
ance) be  charged  to  the  appropriate  operating  expense  or  other  accounts  and 
credited  to  this  account,  against  which  (in  such  case)  the  actual  cost  of  satis- 
faction of  the  liability  shall  be  charged  when  the  matter  is  determined.  If 
the  extent  of  the  liability  can  not  be  ascertained  promptly  after  the  liability 
arises,  it  may  be  estimated  as  accurately  as  practicable  for  the  purpose  of 
determining  the  immediate  charge  to  the  expense  or  other  appropriate  account, 


Accounts  foe  Gas  Corporations         27 

in  which  case  the  matter  shall  be  adjusted  when  the  extent  of  the  liability  is 
definitely  ascertained.  If  the  loss  is  of  such  character  that  it  is  in  whole  or 
in  part  indemnifiable  under  any  contract  of  insurance  carried  by  the  corpo- 
ration, the  indemnifiable  portion  of  the  loss  shall  be  charged  to  the  insurer 
and  credited  to  "  Casualties  and  Insurance  Reserve ".  Also  credit  to  this 
account  the  amounts  charged  to  the  operating  expense  account  "  Insurance  " 
to  cover  self-carried  risks. 

382.  Other  Optional  Reserves. 
A  sub-account  shall  be  raised  for  each  particular  reserve,  and  its  title  shall 
designate  the  purpose  of  such  reserve  and  the  first  entry  therein  shall  express 
in  full  such  purpose. 

44.  Stocks  defined. —  By  Stocks  of  a  corporation,  as  the  term  is  here  used, 
are  meant  those  securities  which  represent  permanent  interests  in  the  corpo- 
ration or  interests  which,  if  terminable,  are  so  only  at  the  option  of  the  cor- 
poration. 

45.  Stocks  classified. —  Stocks  are  classsified  as  — 
Debenture  Stocks, 

First  Preferred  Stocks, 

Second  Preferred  Stocks,  etc.,  and 

Common  Stocks. 

46.  Debenture  Stocks  defined. —  Debenture  Stocks  are  those  issued  under  a 
contract  to  pay  absolutely  thereon  at  specified  intervals  a  specified  return. 

47.  First  Preferred  Stocks  defined. —  First  Preferred  Stocks  are  those  which 
have  the  first  claim  upon  such  dividends  as  may  be  distributed.  They  may  be 
cumulative  or  noncumulative,  participating  or  nonparticipating.  If  cumu- 
lative, the  amount  by  which  the  dividend  at  any  dividend  period  fails  to  reach 
the  stipulated  rate  is  carried  forward  to  continue  as  a  claim  upon  dividends 
until  satisfied;  if  noncumulative,  such  amount  lapses.  If  a  first  preferred 
stock  is  participating,  it  is  not  limited  to  the  stipulated  rate  in  the  amount 
of  dividends  which  it  may  receive,  but  is  entitled  to  participate,  in  accordance 
with  the  terms  of  the  contract  under  which  it  is  issued,  in  further  dividends; 
if  nonparticipating,  it  is  limited  to  the  stipulated  rate. 

48.  Second  Preferred  Stocks  defined. —  Second  Preferred  Stocks  are  those 
whose  claims  in  the  distribution  of  dividends  are  next  after  those  of  first 
preferred  stocks.  These  stocks  may  also  be  cumulative  or  noncumulative,  par- 
ticipating or  nonparticipating. 

49.  Common  Stocks  defined. —  Common  Stocks  are  those  whose  claims  in  the 
distribution  of  dividends  are  subordinate  to  the  claims  of  all  other  stocks. 

50.  Votirg  Powers. —  Stocks  differ  also  in  regard  to  the  voting  powers  inci- 
dent to  ownership  of  them. 

51.  Retirement  of  Stocks. —  Stocks  are  sometimes  issued  under  contracts 
wherein  the  issuing  corporation  reserves  to  itself  the  right  to  retire  them  at 
its  option,  either  absolute  or  subject  to  conditions  expressed  in  the  contracts 
whereunder  the  stocks  are  issued. 

52.  Separate  account  required  for  each  class  of  stocks. —  In  the  accounts  of 
stocks  outstanding,  a  separate  account  shall  be  raised  for  each  class  of  stock 
issued,  and  no  two  stocks  shall  be  considered  of  I  he  same  class  unless  they 


28  Public  Service  Commission,  Second  Disteict 

are  equal  in  their  interest  or  dividend  rights,  their  voting  rights,  and  the 
conditions  under  which  they  may  be  retired.  The  characteristics  of  any  class 
of  stocks  in  these  three  regards  shall  be  designated  in  the  title  of  the  account 
raised  to  cover  such  stocks,  and  shall  be  clearly  expressed  in  the'  first  entry 
in  such  account.  To  the  account  for  any  class  of  stocks  shall  be  credited 
when  issued  the  par  value  of  the  amount  of  stock  of  that  class  issued.  If 
such  issue  is  for  money,  that  fact  shall  be  stated;  and  if  for  any  other  con- 
sideration than  money,  the  person  to  whom  issued  shall  be  designated,  and 
the  consideration  for  which  issued  shall  be  described  with  sufficient  par- 
ticularity to  identify  it;  if  such  issue  is  to  the  treasurer,  or  other  agent  of 
the  corporation,  to  be  by  him  disposed  of  for  the  benefit  of  the  corporation, 
that  fact  and  the  name  of  such  agent  shall  be  shown;  and  such  agent  shall 
in  his  account  of  the  disposition  thereof  show  the  like  details  concerning  the 
consideration  realized  thereon,  which  account  when  accepted  by  the  corpo- 
ration shall  be  preserved  as  a  corporate  record.  If  the  fair  cash  value  of 
the  consideration  realized  upon  the  issue  of  any  amount  of  stock  is  greater 
than  the  par  value  of  such  stock,  the  excess  shall  be  credited  to  the  account 
"  Premiums  on  Stocks,"  and  corresponding  reference  thereto  shall  be  con- 
tained in  the  entry  relating  to  such  stock  in  the  stock  account. 


SCHEDULE  B. 


INCOME  ACCOUXT. 

i.  Income  and  Indicant  accounts  compared. — A  comparison  of  the  balances 
in  the  foregoing  accounts  (Schedule  A)  at  any  particular  moment  will,  if  the 
accounts  have  been  properly  kept,  show  the  then  existing  condition  of  a  cor- 
poration's affairs  so  far  as  such  condition  can  be  shown  through  the  accounts. 
The  group  of  accounts  just  defined  is  sometimes  called  the  Balance  Sheet  or 
Indicant  accounts.  Their  balances  indicate  the  condition  of  the  corporation 
at  any  particular  time.  These  accounts  with  their  subsidiary  accounts  are 
all  that  are  necessary  prior  to  the  time  when  the  corporation  becomes  what 
may  be  called  a  "  going  concern  ". 

When  a  corporation  begins  operations  it  requires  an  additional  group  of 
accounts  in  which  to  classify  in  convenient  form  the  accounting  history  of 
the  various  changes  it  undergoes.  Such  group  of  accounts  brings  together 
or  accumulates  the  account  of  the  various  incidents  of  the  corporation's  his- 
tory. This  group  of  accounts  may  be  called  the  Income  account.  They  are 
made  up  usually  on  a  yearly  basis  and  are  closed  into  one  grand  account 
called  "  Corporate  Surplus  or  Deficit,"  which  ties  together  this  group  of 
accounts  and  the  preceding  group. 

2.  Divisions  of  Income  account. —  The  principal  divisions  of  this  group  of 
accounts  are  the  Revenue  accounts,  the  Revenue  Deduction  accounts,  the  In- 
come Deduction  accounts,  and  the  Appropriation  accounts. 

3.  Revenues  denned. —  By  Revenues,  as  the  word  is  used  herein,  are  meant 
all  amounts  of  money  which  the  corporation  receives  or  becomes  lawfully  en- 
titled to  recover  for  services  rendered,  for  products  sold,  as  gross  profits  on 
merchandise  sold,  or  as  a  return  upon  its  property  (or  interests  in  property). 
Revenues  are  classified  as  Operating  Revenues  and  Is  on-operating  Revenues. 

4.  Operating  Revenues  denned. —  Operating  Revenues  are  those  derived  from 
the  sale  of  products  and  merchandise,  from  services  rendered,  and  from  return 
on  property  used  by  the  person  or  corporation  in  its  own  operations. 

5.  Non-operating  Revenues  defined. —  'Son-operating  Revenues  are  those  de- 
rived as  a  return  upon  the  property  of  the  corporation  in  the  hands  of 
others  or  from  its  interests  in  property  in  the  hands  of  others.  They  may  be 
sub-classified  as  Rents,  Interest,  Dividends,  and  Miscellaneous. 

6.  Revenue  Deductions  defined. —  Revenue  Deductions  include  Expenses, 
Taxes,  and  Uncollectible  Bills. 

7.  Expenses  defined. —  Expenses  are  those  outgoes  (including  capital  con- 
sumed) necessary  to  the  production  of  the  commodities  sold  and  the  services 
rendered,  and  to  the  collection  of  the  revenues.  They  are  divided  into  Operat- 
ing Expenses  and  Son-operating  Expenses.  Operating  Expenses  are  those 
incident  to  the  operating  revenues. 

1^9] 


30  Public  Seevice  Commission,  Second  District 

8.  Taxes  defined. —  Taxes  are  those  annual  or  other  payments  exacted  by 
governments  for  the  purpose  of  raising  funds  for  public  uses. 

9.  Uncollectible  Bills  defined. —  When  a  corporation  is  engaged  regularly 
in  rendering  to  general  consumers  a  service,  or  in  supplying  to  such  con- 
sumers a  commodity  (as  e.  g.,  electric  energy  or  gas  for  light,  heat,  or 
power),  current  accounts  or  claims  against  such  consumers  for  such  service 
rendered  or  commodity  supplied  which  are  incapable  of  collection  by  the  exer- 
cise of  reasonable  diligence  are  included  under  the  name  Uncollectible  Bills. 

10.  Gross  Income,  Income  Deductions,  and  Net  Corporate  Income  defined. — 
Revenues,  diminished  by  expenses,  taxes,  and  uncollectible  bills,  give  an 
amount  called  Gross  Income,  which  is  applicable  to  corporate  and  leased 
properties.  Gross  income  is  subject  to  several  compulsory  deductions,  mostly 
contractual,  like  rent,  interest,  etc.,  and  the  remainder  after  these  are  made 
is  called  Net  Corporate  Income,  which  being  subject  only  to  the  discretion  of 
the  corporation  is  most  conveniently  carried  directly  to  the  corporate  sur- 
plus. The  accounts  covering  the  compulsory  deductions  from  gross  income,  as 
above  defined,  are  called  the  Income  Deduction  accounts. 

xi.  Appropriation  accounts  defined. —  The  accounts  covering  the  yearly 
changes  in  the  corporate  surplus  are  called  the  Appropriation  accounts,  since 
practically  all  of  the  matters  covered  by  them  are  within  the  discretion  of  the 
corporation,  although  they  also  include  certain  adjustments  made  because 
of  facts  of  previous  years  imperfectly  accounted  for  at  the  time  (whether 
through  error  or  through  lack  of  information),  and  certain  other  minor 
matters  like  extraordinary  expenses  not  chargeable  as  deductions  from  reve- 
nues; also  such  matters  as  profits  on  the  sale  of  capital,  and  profits  and 
losses  on  the  sale  of  investments. 

12.  Definitions  of  Gas  Operating  Revenue  accounts. —  Credits  to  the  various 
revenue  accounts  shall  be  made  upon  the  basis  of  bills  rendered  or  of  gross 
prices.  Discounts  for  prompt  payment,  corrections  of  overcharges,  overcol- 
lections  theretofore  credited  and  afterward  corrected,  authorized  abatements 
and  allowances,  and  other  corrections  and  deductions  shall  be  charged  to  the 
revenue  account  to  which  they  relate.  In  the  following  definitions  of  accounts 
the  letters  and  numbers  prefixed  to  the  titles  are  inserted  solely  for  con- 
venience of  reference  and  are  no  part  of  the  titles  or  of  the  definitions: 

431.  Municipal  Street   Lighting  —  Gas.1 
Credit  to  this  account  all  revenues  derived  from  lighting  streets  for  munici- 
pal corporations  by  means  of  gas,  or  from  supplying  gas  therefor. 

Note. —  In  the  foregoing  account  the  word  "  streets "  is  to  be  interpreted  to 
include  parks,  plazas,  and  all  other  public  places  not  classified  as  buildings. 

432.  Lighting  Municipal  Buildings  —  Gas. 
Credit  to  this  account  all  revenues  derived  from  lighting  municipal  build- 
ings by  means  of  gas,  or  from  gas  supplied  for  such  purposes,  or  for  heat 
or  power  in  municipal  buildings  where  such  gas  is  supplied  at  lighting  rates 
and  is  not  separately  measured. 


1  Charges  to  this  and  the  following  revenue  accounts  must  be  made  in  such  wise 
as  to  permit  their  classification  in  the  annual  report  of  the  corporation  to  the 
Public  Service  Commission. 


Accounts  for  Gas  Coepoeations  31 

433.  Municipal  Heat  and  Power  —  Gas. 

Credit  to  this  account  all  revenues  derived  from  municipal  corporations  for 
gas  supplied  at  special  heat  or  power  rates  to  such  corporations  for  the 
production  of  heat  and  power. 

434.  Miscellaneous  Gas  Revenue  —  Municipal. 

Credit  to  this  account  all  revenues  derived  from  supplying  gas  to  municipal 
corporations  and  not  provided  for  in  the  foregoing  accounts;  also  those  from 
the  letting  of  engines  and  other  gas  equipment  to  such  corporations. 

435.  Prepaid  Gas. 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  prepaid  gas 
delivered  through  so-called  "  prepayment  meters  ". 

436.  Commercial  Metered  Lighting  —  Gas. 

Credit  to  this  account  all  revenues  derived  from  all  consumers  except 
municipal  corporations  for  gas  measured  through  ordinary  meters  and  sup- 
plied for  lighting  at  lighting  rates. 

Note  A. —  Where  gas  flowing  through  any  ordinary  meter  is  used  by  any  other 
consumer  than  a  municipal  corporation  for  lighting  and  incidentally  for  heating  or 
power  purposes,  the  revenues  derived  therefrom  shall  be  credited  to  this  account. 

Note  B. —  This  account  does  not  include  gas  sold  or  supplied  to  other  gas  cor- 
porations for  distribution  ;  for  such  gas,  see  account  No.  438,  "  Other  Gaa  Corpora- 
tions ' . 

437.  Commercial  Heat  and  Power  —  Gas. 

Credit  to  this  account  all  revenues  derived  from  all  consumers  except 
municipal  corporations  for  gas  supplied  for  heat  or  power  at  special  heat  or 
power  rates. 

Note. —  This  account  does  not  include  gas  sold  or  supplied  to  other  gas  corpora- 
tions for  distribution ;  for  such  gas,  see  account  No.  438,  "  Other  Gas  Corporations  ". 
438.  Other  Gas   Corporations. 

Credit  to  this  account  all  revenues  derived  from  gas  sold  or  supplied  to 
other  gas  corporations  to  be  by  them  distributed  through  their  own  pipes  to 
consumers.  If  any  portion  of  such  gas  is  incidentally  consumed  by  such  cor- 
porations for  their  own  benefit,  whether  for  light,  heat,  or  power,  it  shall  be 
included  herein,  if  not  separately  measured,  or  if  included  under  the  same 
contract  with  that  which  is  distributed  by  them  to  consumers. 
439.  Commissions  on  Others'  Gas. 

Credit  to  this  account  all  revenue  accruing  to  the  corporation  for  distribut- 
ing gas  of  other  companies  through  its  pipes  and  selling  the  same,  and  for  all 
other  services  performed  in  connection  therewith. 

Note — In  case  the  corporation  distributes  through  its  pipes  the  gas  of  another  company, 
the  corporation  shall  charge  "Cash"  or  the  appropriate  sub-account  (or  accounts)  under 
"Accounts  Receivable"  with  the  value  of  the  gas  of  such  other  company  supplied  by  the 
corporation  to  consumers,  and  shall  enter  a  corresponding  credit  to  a  clearing  account 
"Gas  Supplied  by  (blank)  Company  and  distributed  by  this  Corporation,"  [or,  "by 
(blank)."  naming  the  corporation  keeping  the  account]  which  account  shall  be  cleared 
monthly  by  charging  to  such  clearing  account  the  amount  necessary  to  balance,  and 
crediting  to  the  account  "Commissions  on  Others'  Gas"  the  corporation's  proportion  of 
the  total  revenue,  and  to  the  account  of  the  company  supplying  such  gas  to  the  cor- 
poration that  company's  proportion  of  such  total  revenue. 

440.  Rent  of  Gas  Appliances. 
Credit  to  this  account  all  revenues  derived  from  the  letting  of  gas  engines, 
heating  appliances,   lamps,   and  other  gas   apparatus   and   appliances    (except 


32  Public  Seevice  Commission,  Second  Disteict 

meters)  to  others  than  municipal  corporations.  Where  the  contract  of  letting 
names  only  a  single  consideration  for  both  the  letting  and  the  maintenance 
of  the  appliances  so  let,  the  entire  revenue  shall  be  included  in  this  account. 

441.  Gas    Merchandise    and   Jobbing   Revenue. 

Credit  to  this  account  all  receipts  from  the  sale  of  gas  merchandise  and 
from  gas  jobbing.  Charge  to  this  account  the  cost  to  the  accounting  cor- 
poration of  gas  merchandise  sold,  such  cost  including  transportation  charges 
paid  on  such  goods. 

Credit  also  to  this  account  the  profit  or  commission  accruing  to  the  cor- 
poration on  all  jobbing  work  performed  by  it  as  agent  under  agency  contracts, 
whereunder  it  undertakes  to  do  jobbing  work  for  another  for  a  stipulated 
profit  or  commission  upon  its  actual  expense  for  labor,  materials,  and 
supplies. 

Note  A. —  In  its  annual  reports  to  the  Public  Service  Commission  the  reporting 
corporation  will  be  required  to  analyze  the  credits  and  debits  to  this  account. 

Note  B. —  This  account  does  not  include  receipts  from  the  sale  of  superseded 
equipment,  or  of  junk  or  other  scrap  or  salvage. 

442.  Sale  of  Residuals  and  Byproducts. 

Credit  to  this  account  all  revenue  derived  from  the  sale  of  residuals  and 
byproducts. 

This  account  shall  be  so  kept  as  to  enable  the  corporation  to  show  in  its 
annual  report  to  the  Public  Service  Commission  the  amounts  of  revenue 
derived  from  the  following  sources: 

Sale  of  Gas  Coke, 

Sale  of  Coal-gas  Tar, 

Sale  of  Water-gas   Tar, 

Sale  of  Ammoniacal  Liquor. 

Sale  of  Other  Residuals  and  Byproducts. 

Note  A. —  The  amount  of  revenue  from  the  sale  of  any  residual  or  byproduct 
shall  be  determined  by  the  price  received  at  the  point  of  delivery  to  the  purchaser, 
and  any  expense  incurred  by  the  corporation  in  effecting  delivery  shall  be  charged 
to  the  appropriate  operating  expense  account. 

Note  B. —  Eesiduals  and  byproducts  consumed  by  the  corporation  shall  not  be 
credited  to  the  account  "  Sale  of  Eesiduals  and  Byproducts  ". 

443.  Joint  Gas  Rent  Revenue. 
When  any  corporation  engages  in  gas  operations  for  the  production  of 
some  of  its  product  for  the  benefit  of  another  or  others  under  an  arrangement 
for  apportioning  the  expense  upon  the  basis  of  the  relative  amounts  of  benefit 
to  the  several  participants  in  the  arrangement,  if  such  arrangement  provides 
for  the  receipt  by  the  corporation  of  any  profit  or  return  upon  its  property, 
such  profit  or  return  upon  property  shall,  as  it  accrues,  be  credited  month 
by  month  to  this  account.  Such  profit  or  return  must  be  over  and  above  any 
provision  for  wear  and  tear  and  depreciation  of  plant  involved  in  the  said 
production,  and  the  amount  thereof  must  be  as  provided  in  the  arrangement 
under  which  the  joint  production  occurs. 

444.  Other    Miscellaneous    Gas    Revenue. 
Credit  to  this  account  all  revenues  derived  from  others  than  municipal  cor- 
porations for  the  supply  of  gas  and  from  other  gas  operations  not  includible 
in  any  of  the  foregoing  accounts. 


Accounts   foe   Gas   Corporations  33 

13.  Revenue  from  Outside  Operations. —  The  detailed  revenue  accounts  for 
operations  other  than  the  above  mentioned  will  be  provided  for  elsewhere. 

14.  Operating  Expenses  defined. —  By  the  operating  expenses  of  a  corpora- 
tion are  meant  such  expenses  as  are  necessary  to  the  maintenance  of  the 
corporate  organization,  the  rendering  of  services  required  or  authorized  by 
law,  the  sale  of  merchandise,  the  production  (including  herein  capital  con- 
sumed) and  disposition  of  the  commodities  produced,  and  to  the  collection 
of  the  revenues  therefor.  Expenses  directly  incident  to  the  collection  of  non- 
operating  revenues  and  the  maintenance  of  the  property  from  which  non- 
operating   revenues   are   derived   are   excluded   from   operating  expenses. 

15.  Definitions  of  certain  terms  used  in  connection  with  expense  accounts. — 
Except  where  some  other  meaning  is  clearly  specified  in  the  definitions  of  the 
accounts,  the  following  words,  wherever  used  hereunder,  have  the  meanings 
below  stated: 

Cost  means  cash  or  money  cost,  and  not  price  based  on  a  term  of  credit. 

Labor  means  human  services  of  whatever  character. 

Cost  of  labor  includes  wage-,  salaries,  and  fees  paid  to  persons  for  their 
services. 

Cost  of  materials  and  supplies  includes  all  specifically  assignable  transporta- 
tion charges  incurred  in  obtaining  the  delivery  of  such  materials  and  sup- 
plies upon  the  premises  of  the  purchaser,  and  cost  of  any  special  tests  made 
thereon  prior  to  their  acceptance;  and  in  case  the  accounting  person  or  cor- 
poration desires,  it  may  include  a  suitable  proportion  of  store  expenses  (when 
the  materials  and  supplies  are  passed  through  stores)  and  the  cost  of  further 
transportation  to  the  place  of  consumption,  and  a  suitable  proportion  of  the 
expenses  of  the  purchasing  department,  in  which  case  a.  corresponding  credit 
shall  be  made  to  the  suitable  expense  account  as  hereinafter  provided. 

Cost  of  repairs,  when  made  by  the  accounting  person  or  corporation,  in- 
cludes cost  of  labor  expended  and  material  consumed,  less  salvage,  if  any. 

Note. —  It  is  not  required  that  the  transportation  element  of  cost  shall  be  as- 
signed with  a  greater  degree  of  accuracy  than  to  the  nearest  cent  per  unit  of 
material  or  supply.  Whei*e  a  single  transportation  item  covers  a  multitude  of 
things  the  portion  of  the  expense  not  assigned  to  specific  things  should  be  charged 
to  the  same  account  that  store  expenses  are  charged  to. 

xfv  Definitions  of  Gas  Operating  Expense  accounts. —  In  the  following  defini- 
tions of  accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted 
solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or  of  the 
definitions : 

GENERAL   ACCOUNTS. 

I.  Production  Expenses. 
II.  Transmission    and    Distribution    Expenses. 

III.  Municipal  Street  Lighting  Expenses. 

IV.  Commercial  Expenses. 

V.  General   and   Miscellaneous  Expenses. 

I.  PRODUCTION  EXPENSES. 

Note. —  In  case  the  accounting  corporation  operates  two  or  more  separate  and 
distinct  plants  for  the  production  of  gas,  it  will  be  required  to  keep  (with  the  detail 
herein  prescribed)  separate  accounts  covering  production  at  the  several  plants.  In 
case  the  circumstances  of  any  corporation  make  it  impracticable  to  allocate  the 
cost  of   its  labor  among  the  accounts  below    prescribed,  it    should    petition   the   Public 


34  Public  Service  Commission,  Second  District 

Service  Commission  for  permission  to  consolidate  two  or  more  of  them.  Such  application 
must  set  out  in  full  the  facts  which  in  the  judgment  of  the  petitioner  make  such  allocation 
impracticable. 

601.  Works  Superintendence  and  Labor. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Works  Superintendence:  This  head  includes  the  cost  of  labor  of  the 
engineer  in  charge  of  works  and  his  assistants,  also  day  and  night  foremen 
and  station  clerks. 

Boiler  House  Labor:  This  head  includes  the  cost  of  labor  employed  in 
weighing  and  handling  coal,  coke,  and  breeze  from  place  of  storage  to  boilers; 
labor  employed  in  operating  boilers  and  engines  (including  such  labor  as  that 
of  shovellers,  weighers,  boiler  firemen  and  engineers,  and  oilers)  ;  and  labor 
employed  in  pumping  oil  tar  from  generators  through  separators  to  storage 
tanks,  and  from  storage  tanks  to  boilers;  also  such  labor  as  that  of  pump 
house  men. 

Retort  House  Labor:  This  head  includes  the  cost  of  labor  employed  in 
firing  benches,  charging  and  re-charging  retorts,  patching  and  scurfing  retorts, 
cleaning  pipes  and  lids,  quenching  and  handling  coke  used  under  benches,  and 
handling  coal  from  place  of  storage  to  retort  house.  This  includes  such  labor 
as  that  of  foremen,  firemen,  furnaeemen,  retort  and  boiler  tenders,  patchers, 
pipemen,  lid  cleaners,  coke  quenchers,  guymen,  riggers,  shovellers,  and 
wheelers. 

Generator  House  Labok:  This  head  includes  the  cost  of  labor  employed 
in  weighing  and  handling  coal  and  coke  from  place  of  storage  to  charging 
floor,  and  in  operating,  firing,  clinkering,  and  cleaning  generators.  This 
includes  such  labor  as  that  of  shovellers,  weighers,  pumpers,  generator  fire- 
men, and  runners. 

Purifier  House  Labor:  This  head  includes  the  cost  of  labor  employed 
in  changing  purifier  boxes,  revivifying  oxide,  and  removing  spent  oxide  to 
refuse  pile.     This  includes  such  labor  as  that  of  foremen  and  laborers. 

Miscellaneous  Labor  at  Works:  This  head  includes  the  cost  of  general 
labor  in  and  about  the  works  not  specifically  engaged  in  the  manufacture  of 
gas,  such  as  that  of  watchmen,  janitors,  and  messengers,  laborers  employed 
in  cleaning  up  yards,  removing  snow,  and  cleaning  out  refuse  pile. 

602.  Boiler  Fuel. 
Charge  to  this  account  the  icost  (in  storage  pile)  of  fuel  used  under  boilers. 
This  includes  cost  of  fuel  used,  freight,  demurrage  charges,  and   labor  and 
cartage  in  discharging  and  transferring  fuel  from  point  of  shipper's  delivery 
to  place  of  storage, 

Note. —  If  boiler  fuel  is  delivered  from  point  of  shipper's  delivery  to  boilers  by 
other  than  boiler  house  labor,  cost  of  such  labor  should  be  added  to  cost  of  fuel. 

603.  Water. 
Charge  to  this  account  the  cost  of  water  used  for  gas  production. 

604a.  Fuel  Under  Retorts. 

Charge  to  this  account  the  cost  (in  storage  pile)  of  fuel  used  under  retorts. 
This  includes  cost  of  fuel  used,  freight,  demurrage  charges,  and  labor  and 
cartage  employed  in  discharging  and  transferring  fuel  from  point  of  shipper's 
delivery  to  storage  pile. 

Note. —  If  fuel  is  delivered  from  storage  to  retort  house  by  other  than  retort 
house  labor,  cost  of  such  labor  should  be  added  to  cost  of  fuel. 


Accounts  foe  Gas  Corporations  35 

604b.  Coal  Carbonized. 

Charge  to  this  account  the  cost  (in  storage  pile)  of  gas  coal  used  in  retorts. 
This  includes  invoice  cost  of  coal  used,  freight,  demurrage  charges,  and  labor 
and  cartage  employed  in  discharging  and  transferring  coal  from  point  of 
shipper's  delivery  to  storage  pile. 

Note. —  If  coal  is  delivered  from  storage  to  retort  house  by  other  than  retort 
house  labor,  cost  of  such  labor  should  be  added  to  cost  of  coal. 

605.  Coal  Gas  Enricher. 
Charge  to  this  account  the  cost    (in  storage)    of  enricher  materials  used  in 
enriching  coal  gas.     This   includes  cost  of  enricher  used,  freight,  demurrage 
charges,  and  labor  and  cartage  employed  in  transferring  enricher  from  point 
of  shipper's  delivery  to  storage. 

606.  Generator  Fuel. 

Charge  to  this  account  the  cost  (in  storage  pile)  of  fuel  used  in  generators. 
This  includes  invoice  cost  of  fuel  used,  freight,  demurrage  charges,  and  labor 
and  cartage  employed  in  discharging  and  transferring  fuel  from  point  of 
shipper's  delivery  to  storage  pile. 

Note. —  If  generator  fuel  is  delivered  from  storage  to  generator  house  by  other 
than  generator  house  labor,  cost  of  such  labor  should  be  added  to  cost  of  generator 
fuel. 

607.  Water  Gas  Oil. 

Charge  to  this  account  the  cost  (in  storage  tanks)  of  gas  oil  or  naphtha 
used  in  making  water  gas.  This  includes  invoice  cosf'of  oil  used,  freight, 
demurrage  charges,  and  labor  and  cartage  employed  in  getting  oil  from  point 
of  shipper's  delivery  to  storage  tanks. 

008.  Purification  Supplies. 

Charge  to  this  account  the  cost  of  material  used  in  gas  purification.  This 
includes  the  average  cost  of  oxide  actually  used  (the  invoice  cost  and  freight, 
plus  shavings,  plus  labor  and  cartage  necessary  to  store  it,  plus  the  cost  of 
mixing  it),  and  the  invoice  cost  of  lime  actually  used. 

609.  Miscellaneous  Works  Expense. 

Charge  to  this  account  the  cost  of  sundry  supplies  and  expenses  in  con- 
nection with  the  works  not  includible  in  other  accounts.  This  includes  lubri- 
cating oil,  waste  and  packing,  and  other  small  materials  of  like  nature  used 
in  gas  production;  also  incidental  items,  such  as  telephone,  ice,  brooms,  mops, 
kerosene,  soap,  towels,  and  similar  expenses. 

610.  Repairs  of  Works  axd  Station  Structures. 

Charge  to  this  account  the  cost  of  all  repairs  of  works  and  station  struc- 
tures, including  permanent  piers  and  other  foundations.  Such  structures 
include  retort  houses,  generator  houses,  purifier  houses,  engine  houses,  boiler 
houses,  meter  houses,  coal  sheds,  coke  sheds,  tar  houses  and  wells,  oil  tanks, 
and  other  structures  for  storage  of  fuel  to  be  consumed  or  carboni2«d  in  the 
production  of  gas  and  the  operations  auxiliary  thereto;  structures  for  residuals  ♦ 
and  byproducts;  appurtenant  walks,  fences,  drives,  tramways,  trestles,  etc., 
and  all  fixtures  permanently  attached  to  such  -structures  and  made  a  part 
thereof;  also  all  buildings,  holder  houses,  and  other  structures  at  outlying 
holder  stations,  except  the  holders  and  their  appurtenances. 

Note. —  Repairs  of  short-lived  and  specially  provided  foundations  and  settings 
for  furnaces  and  boilers,  steam  engines,  gas  engines,  pumps,  generators,  benches, 
condensers,   washers,   scrubbers,   purifiers,   etc.,   shall  not  be  included  herein.      Such 


36  Public  Service  Commission,  Second  District 

foundations  and  settings  and  the  apparatus  and  machinery  to  which  they  pertain 
are  not  intended  to  be  included  under  the  term  fixtures  as  above  used.  Nor  shall 
repairs  of  gas  holders  be  included,  in   this  account. 

GC508.  Repairs  of  Power  Plant  Equipment. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Repairs  of  Fobnaces,  Boilers,  and  Accessories:  This  head  includes  the 
cost  of  repairing  all  furnaces,  boilers,  and  boiler  apparatus  and  accessories 
devoted  to  the  production  of  steam  for  use  in  producing  gas  and  in  furnishing 
motive  power  in  gas  works  and  stations.  This  covers  boilers  and  valves 
thereto  attached,  appurtenant  furnaces  and  grates,  and  flues  leading  to  smoke- 
stacks and  chimneys,  and  the  specially  provided  foundations  and  settings  of 
such  boilers  and  appurtenances.  It  also  covers  mechanical  stokers  and  other 
like  apparatus  for  regulating  the  supply  of  fuel,  etc.,  feed  and  hot  water 
heaters  and  economizers,  injectors,  filters,  feed  pumps,  blower  engines,  coal 
conveyors,  ash  conveyors,  water  pipes,  steam  traps,  drains,  and  separators; 
and  pipes  for  conducting  steam  from  the  boiler  to  the  engine,  to  condensers, 
or  to  the  gas  producers,  exhaust  pipes,  etc.  It  does  not  include  steam  pipes 
whose  primary  purpose  is  the  heating  of  buildings. 

Repairs  of  Steam  Engines  :  This  head  includes  the  cost  of  repairing  all 
steam  engines  devoted  to  use  as  prime  movers  in  gas  works,  including  the 
specially  provided  foundations  and  settings  of  such  engines.  The  engine, 
whether  reciprocating  or  rotary  (such  as  steam  turbines),  includes  the  throttle 
or  inlet  valve  and  the  governor ;  also  condensers  and  air  pumps,  but  not  the 
steam  pipe  leading  from  the  boiler,  nor  the  exhaust  pipe. 

Repairs  of  Gas  Engines:  This  head  includes  the  cost  of  repairing  all 
gas  engines  devoted  to  use  as  prime  movers  in  gas  works  and  stations,  includ- 
ing the  specially  provided  foundations  and  settings  of  such  engines.  The 
engine  includes  the  inlet  valve,  governor,  and  ignition  and  starting  apparatus, 
but  not  the  pipe  leading  from  the  gas  holder,  nor  the  exhaust  pipe. 

Repairs  of  Miscellaneous  Power  Plant  Equipment:  This  head  includes 
the  cost  of  repairing  all  miscellaneous  power  plant  equipment  at  gas  works 
which  is  not  includible  in  any  of  the  foregoing  accounts.  This  includes  such 
mechanical  apparatus  as  belts,  pulleys,  hangers,  countershafts,  and  other 
apparatus  intermediary  between  the  prime  mover  and  the  apparatus  operated, 
cranes,  hoists,  etc.,  and  machine  tools  and  such  other  tools  at  power  plants 
as  are  proper  to  be  capitalized,  etc. 

Note. —  Charges  to  this  account  must  be  made  in  such  manner  as  to  permit 
their  analysis  in   accordance   with   the  foregoing  heads. 

GCG11.  Repairs  of  Gas  Apparatus. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Repairs  of   Benches   and  Retorts:      This  head  includes  the   cost  of   all 
repairs  of   benches,   including  the   retorts   and    their    settings,   and   auxiliary 
piping,  including  ascension  pipes,  and  foul  and  hydraulic  mains. 

Repairs  of  Water  Gas  Sets  and  Accessories:  This  head  includes  the 
cost  of  repairing  all  water  gas  generators  and  accessories  devoted  to  the  pro- 
duction of  gas,  the  specially  provided  foundations  and  settings  for  such  water 
gas  sets,  and  the  flues  leading  therefrom  to  smokestacks  and  chimneys.  This 
covers  not  only  generators,  carbureters,  superheaters,  seals,  and  piping  con- 
nected therewith,  but  also  blast  apparatus,  oil  and  steam  supplying  apparatus, 
oil  heaters,  etc.  It  does  not  include  pipes  whose  primary  purpose  is  the 
warming  of  buildings. 


Accounts   for  Gas  Corporations  37 

Repairs  of  Purification  Apparatus:  This  head  includes  the  cost  of  all 
repairs  of  the  apparatus  for  purifying  gas,  including  condensers,  washers, 
scrubhers,  purifiers,  tar  extractors,  etc.,  and  their  specially  provided  founda- 
tions and  settings. 

Repairs  of  Holders:  This  head  includes  the  cost  of  all  repairs  of  gas 
holders  and  appurtenances  at  works  and  of  those  at  district  stations. 

Note. —  Repairs  of  holder  housings  shall  be  charged  to  account  No.  610,  "  Repairs 
of  Works  and  Station   Structures  ". 

Repairs  of  Miscellaneous  EQUIPMENT:  This  head  includes  the  cost  of 
repairing  all  accessory  equipment  and  apparatus  used  in  the  production  'and 
storage  of  gas  not  specifically  provided  for  in  the  foregoing  accounts,  including 
repairs  of  exhausters,  station  meters,  governors,  etc. ;  apparatus  for  charging 
retorts;  conveyors  for  disposing  of  coke  and  other  products  and  residuals; 
tar  and  ammonia  apparatus,  pumps,  pipes,  tanks,  etc. 

Note. —  Charges  to  this  account  must  be  made  in  such  manner  as  to  permit 
their    analysis    in    accordance    with    the   foregoing  heads. 

615.  Repairs  of  Works  Tools. 
Charge   to   this   account   the   cost  of   repairing  such   tools  and   implements 
used  in  the  production  and  storage  of  gas  as  have  been  capitalized. 

616.  Gas  Storage. 

Charge  to  this  account  the  cost  of  labor  and  material  (except  repairs)  em- 
ployed in  storing  and  regulating  the  flow  of  gas  to  distributing  mains  by 
holder  pressure.  This  includes  labor  of  firemen,  engineers,  valvemen,  and 
superintendents  when  engaged  on  gas  storage;  and  cost  of  coal,  coke,  water, 
and  incidentals. 

617.  Gas  from  Other  Sources. 

Charge  to  this  account  the  cash  purchase  price  of  gas  bought  from  other 
companies  for  distribution  through  the  system  of  the  accounting  corporation; 
also  the  corporation's  proportion  of  the  cost  of  production  (including  main- 
tenance, but  not  including  any  pure  rent  or  return  upon  the  value  of  property 
employed)  of  gas  produced  by  another  concern  for  the  use  of  the  corpora- 
tion under  any  joint  arrangement  for  the  sharing  of  expense  upon  the  basis 
of  the  relative  amounts  of  benefit  to  the  several  participants. 

II.  TRANSMISSION  AND  DISTRIBUTION  EXPENSES. 

631.  Transmission  Pumping. 

Charge  to  this  account  the  cost  of  pumping  gas  through  mains  to  the  dis- 
tribution system,  including  inspection  and  regulation  of  booster  governors. 

Note. —  In  gas  operations,  when  gas  is  delivered  to  the  supply  system  outside  the 
works  at  substantially  works  pressure,  the  pipe  system,  including  mains,  feeders, 
and  services  (and  supply  pipes  to  outlying  holders,  if  any),  shall  all  be  classed  In 
the  distribution  system.  When  the  pressure  is  raised  by  means  of  boosters  and  the 
gas  is  delivered  to  the  pipes  at  higher  than  works  pressure,  and  is  later  reduced  in 
pressure  and  delivered  to  the  distribution  system  proper,  that  portion  of  the  pipe 
system  used  for  conducting  gas  at  the  raised  pressure  shall  be  classed  as  the  trans- 
mission system. 

C632.  Distribution  Superintendence,  Supplies,  and  Expenses. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Distribution  Superintendence:  This  head  includes  the  cost  of  all  labor 
employed  in  superintending  the  operation  of  the  street  department,  fitting 
and  repair  shops,  including  the  salaries  of  superintendents,  foremen,  clerks, 
timekeepers,  messengers,  watchmen,  and  janitors  employed  in  the  distribution 
department. 


38  Public  Service  Commission,  Second  District 

Distribution  Supplies  and  Expenses:  This  head  includes  the  cost  of 
office  maintenance  and  incidental  expenses  of  the  street  and  shop  depart- 
ments,  including  light,   heat,  telephone,   water,   ice,  etc. 

Note. —  When  the  distribution  office  is  combined  with  the  works  office  or  com- 
mercial office,  charges  like  rent,  light,  etc.,  should  be  divided  between  them  in  a 
fixed  ratio,  based  upon  the  relative  amounts  of  use. 

034.  Work  ox  Meters  and  Consumers'  Premises. 

Charge  and  credit  to  this  account  in  accordance  with  the  following 
directions: 

G-as  Meter  and  Installation  Work:  Under  this  head  charge  the  cost  of 
labor  employed  and  material  used  in  locking  and  unlocking  meters,  building 
inspection,  pumping  drip,  cleaning  service  or  house  pipe  with  pump;  setting, 
removing,  re-setting  and  changing  position  of  meters;  and  temporary  repairs 
of  leaks  in  house  piping. 

AYork  on  CONSUMEES'  Premises:  Charge  to  this  account  under  this  head 
the  cost  of  installing  gas  stoves  and  other  appliances  on  the  preniis  s  of 
consumers,  and  of  work  done  for  consumers  in  maintaining  the  efficiency  of 
their  service,  including  complaint  work  and  other  work  done  in  houses 
beyond  the  end  of  the  meter  outlet  connection.  This  includes  the  cost 
of  adjusting  or  changing  location  of  house  pipes,  gas  burners,  fixtures,  stoves 
and  appliances,  and  the  cost  of  new  pillars,  tips,  burners,  or  devices  not 
chargeable  to  repair  accounts;  it  does  not  include  such  installation  expense 
items  as  are  provided  for  under  the  preceding  head. 

Credit  to  this  account  under  this  head  the  cost  element  of  receipts  for  job- 
bing work  which  the  accounting  corporation  has  performed  as  agent  under 
agency  contracts. 

Note  A — Any  profit  or  commission  accruing  to  the  corporation  on  jobbing  work  per- 
formed as  agent  shall  be  credited  to  account  No.  441  "Gas  Merchandise  and  Jobbing 
Revenue";  to  that  account  shall  also  be  credited  all  receipts  from  gas  jobbing  not  done 
under  agency  contracts. 

Note  B. — Credits  and  debits  to  this  account  must  be  analyzed  in  annual  reports  to  the 
Public  Service  Commission. 

CC35.  Repairs  of  Gas  Mains  and  Services. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Repairs  of  Gas  Mains:  This  head  includes  the  cost  of  labor  and  material 
employed  in  repairing  mains,  including  labor  of  foremen,  inspectors,  caul  Lei-, 
tappers,  pavers,  drillers,  skilled  laborers,  general  laborers,  and  similar  work- 
ers on  street  department  payrolls,  while  engaged  in  repairing,  altering,  over- 
hauling, changing  position  of  or  removing  street  mains;  protecting  exposed 
or  undermined  mains,  searching  for  and  repairing  leaks  in  mains,  and  paving 
over  any  of  the  above  work;  also  material  and  cartage  in  connection  with 
the  above  work. 

Note. —  This  account  must  be  so  kept  as  to  enable  the  corporation  to  show  sepa- 
rately in  its  annual  report  to  the  Public  Service  Commission  the  cost  of  repairing 
trunk  lines  and  mains  used  for  transmission  of  gas,  and  the  cost  of  repairing  those 
used  for  distribution. 

In  gas  operations,  when  gas  is  delivered  to  the  supply  system  outside  the  works 
at  substantially  works  pressure,  the  pipe  system,  including  mains,  feeders,  and 
services  (and  supply  pipes  to  outlying  holders,  if  any),  shall  all  be  classed  in  the 
distribution  system.  When  the  pressure  is  raised  by  means  of  boosters  and  the  gas 
is  delivered  to  the  pipes  at  higher  than  works  pressure,  and  is  later  reduced  in 
pressure  and  delivered  to  the  distribution  system  proper,  that  portion  of  the  pipe 
system  used  for  conducting  gas  at  the  raised  pressure  shall  be  classed  as  the  trans- 
mission system. 


Accounts   fob   Gas   Corpokatioks  39 

Repairs  of  Gas  Services:  This  head  includes  the  cost  of  labor  and  ma- 
terial employed  in  repairing  services,  including  the  same  classes  of  labor  as 
shown   under   the    preceding   head,   "Repairs   of    Gas    Mains,"    while    engaged 

in  repairing,  altering,  removing,  relaying,  cutting  oil',  increasing  the  ^ize  of 
and  changing  the  position  of  services;  searching  for  and  repairing  leaks  in 
services:   and  paving  over  any  of  the  above  work;   also  material  and  cartage 

in  connection   with   the  work   shown  above. 

637.  Repairs  of  Gas  Meters. 
Charge  to  this  account  the  cost  of  testing  and  repairing  consumers'  meters, 

638.  Repairs  of  Distribution  Tools. 
Charge  to  this  account  the  cost  of  sharpening  and  repairing  such  tools  and 
implements   as   have   been   charged   to   capital   accounts   and  are  used   in   the 
street  department  and  the  fitting  and  repair  shops. 

639.  Repairs  of   Gas   Appliances. 
Charge  to  this  account  the  cost  of  repairs  of  gas  lamps,  stoves,  engines,  and 
other  appliances  owned  by  the  corporation  and  rented  to  consumers. 

III.   MUNICIPAL   STREET  LIGHTING  EXPENSES. 
040.  Street  Lamp  Operation  and  Repairs. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Street  Lamp  Operating:  This  head  includes  the  cost  of  labor  employed 
in  cleaning  and  lighting  street  lamj.s,  and  extinguishing  street  lights;  in  in- 
specting and  supervising  the  street  lighting  district;  in  reporting  on  iv- lights 
and  discontinues,  and  watching  the  hours  of  lighting  and  extinguishing;  and 
the  incidental  expenses  of  street   lamp  operating. 

Street  Lamp  Repaibs :  This  head  include-  the  cost  of  labor  and  material 
consumed  in  fitting  up  new  lamp  p:>sts.  re-fitting  standpipes,  cleaning  services, 
cutting  off  services,  re-caulking  columns,  removing  posts,  re-setting  posts, 
re-fitting  columns,  straightening  post-,  and  all  other  work  of  a  similar 
character  necessary  to  maintain  the  street  lighting  system  to  the  degree  of 
efficiency  required  by  the  city:  also  re-paving  over  openings  made  necessary 
by  such  work. 

IV.  COMMERCIAL    EXPENSES. 
G550.  Commercial  Expenses — Gas. 
( 'barge  to  this  account  all  matters  provided  for  under  the  following  heads: 
Commercial  Administration  —  Gas:     This  head  includes  — 

a.  Commercial  Department  General  Labor:  The  cost  of  labor  of  superin- 
tendents and  assistants,  chief  clerks,  stenographers,  general  clerks,  high  bill 
clerks,  switchboard  operator-,  messengers,  janitors,  and  watchmen  employed 
in  the  commercial  department. 

b.  Commercial  Department  Accounting:  The  cost  of  labor  of  bookkeepers 
and  clerks  employed  on  consumers'  accounts. 

c.  Commercial  Department  Contracts:  The  cost  of  labor  of  clerks  and 
other  employees  in  the  application  or  contract  bureau. 

d.  Commercial  Department  Collecting:  The  cost  of  labor  of  regular  and 
prepayment  collectors. 

e.  Meter  Reading:     The  cost  of  labor  of  meter  readers. 

f.  Commercial  Office  Supplies  ami  Expenses:  The  cost  of  supplies  and  the 
incidental   expenses   of   the  commercial   office. 


40  Public  Service  Commission,  Second  District 

Promotion  Office  Expense  —  Gas:     This  head  includes  — 

g.  Promotion  Management :  The  cost  of  administration  of  the  depart- 
ment maintained  for  the  promotion  or  development  of  gas  consumption, 
including  that  portion  of  the  salaries  and  expenses  of  management  and 
clerks  in  agency  and  contract  departments  assignable  to  new  business. 

h.  Demonstrations:  The  cost  of  labor  employed  and  expenses  incurred  in 
exhibiting  and  demonstrating  the  use  of  gas  appliances  for  the  purpose  of 
obtaining  new  business. 

i.  Other  Promotion  Office  Expense:  The  office  expenses  of  the  promotion 
or  new  business  department. 

Advertising  —  Gas:     This  head  includes  — 

j.  Advertising  Salaries  and  Expenses:  The  salaries  and  personal  expenses 
of  the  advertising  manager  and  clerks. 

k.  Advertising  Sundries:  The  cost  of  commercial  advertising  sundries,  in- 
cluding booklets,  dodgers,  newspaper  advertisements,  posters,  bulletins,  and 
all  related  items. 

Note. —  This  head  does  not  Include  the  expense  of  advertising  residuals,  such 
heing  chargeable   to   the  proper  residual   expense   account. 

Canvassing  and  Soliciting  —  Gas  :  This  head  includes  all  expenses  in- 
curred in  soliciting  new  business,  including  wages,  commissions,  and  personal 
expenses  of  canvassers,  cost  of  preparing  estimates,  engineering  advice  on  gas 
installation,  etc.,  and  office  sundries  in  connection  therewith. 

Note. —  Charges  to  this  account  must  be  made  in  such  manner  as  to  permit  their 
analysis  in  accordance  with  the  prescribed  heads. 

V.  GENERAL  AND  MISCELLANEOUS  EXPENSES. 
G831.  General  Administration. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Salaries  of  General  Officers:  This  head  includes  the  salaries  of  the 
chairman  of  the  board,  president,  vice  president,  treasurer,  secretary,  comp- 
troller, general  auditor,  general  manager,  assistant  general  manager,  chief 
engineer,  general  superintendent,  purchasing  agent,  and  all  other  officers  whose 
jurisdiction  extends  to  the  entire  system  and  whose  services  can  not  be 
satisfactorily  allocated  to  the  several  departments. 

Salaries  of  General  Office  Clerks:  This  head  includes  the  salaries  and 
wages  of  general  office  auditors,  bookkeepers,  cashiers,  paymasters,  stenog- 
raphers, clerks  employed  in  counting  cash,  and  all  other  clerks  employed  in 
the  general  office. 

Note. —  Cost  of  labor  of  clerks  in  the  commercial  department  shall  be  charged  to 
account  No.  G550,  "  Commercial  Expenses  —  Gas,"  under  the  head  of  "  Com- 
mercial  Administration  —  Gas  ".      (See   page   39.) 

General  Office  Supplies  and  Incidental  Expenses:  This  head  includes 
the  cost  of  office  supplies,  repairs  of  office  furniture,  and  renewals  of  such  fur- 
niture as  has  not  been  capitalized;  wages  of  janitors,  porters,  and  messengers; 
rent  of  rooms  in  office  buildings  and  repairs  of  such  rented  rooms;  traveling 
and  incidental  expenses  of  general  officers  and  other  general  office  employees; 
and  all  other  miscellaneous  expenses  of  general  offices.  Office  expenses  of 
departmental   officers  must  be  charged  to   the  proper   departmental   accounts. 

Note  A. —  Rents  charged  under  this  head  will  be  required  to  be  reported  sepa- 
rately. 

Note  B. —  This  head  does  not  include  cost  of  telegrams  or  of  telephone  service. 

General  Law  Expenses:  This  head  includes  all  law  expenses  except  those 
incurred    in    the    defense    and    settlement    of    damage    claims.      This    includes 


Accounts   fck   Gas  Corporations  41 

salaries  and  expenses  of  all  counsel,  solicitors,  and  attorneys,  their  clerks 
and  attendants,  and  expenses  of  their  offices;  cost  of  law  books,  printing 
briefs,  legal  forms,  testimony,  reports,  etc.;  fees  and  retainers  for  services 
of  attorneys  not  regular  employees:  court  costs,  and  payments  of.  special, 
notarial,  and  witness  fees  not  provided  for  elsewhere:  expenses  connected  witli 
taking  depositions,  and  all  law  and  court  expenses  not  provided  for  elsewhere. 

Note. —  The  compensation  of  the  general  solicitor  or  counsel  or  other  attorneys 
engaged  partly  in  the  defense  or  settlement  of  damage  suits  and  partly  in  other  legal 
work,  should  he  properly  apportioned  between  this  account  and  account  No.  G847, 
"  Injuries  to  Persons  and  Property,"  uuder  the  head  of  "  Law  Expenses  Connected 
with  Damages  ". 

Miscellaneous  General  Expenses:  This  head  includes  the  cost  of  tele- 
phone service,  telegrams,  and  other  miscellaneous  expenses  connected  with  the 
general  management  not  otherwise  provided  for. 

G838.  Insurance. 

Charge  to  this  account  premiums  paid  to  insurance  companies  for  fire, 
fidelity,  boiler,  casualty,  burglar,  and  all  other  insurance;  also  amounts  set 
aside  as  an  insurance  reserve. 

Note. —  In  their  reports  to  the  Public  Service  Commission  corporations  will  be 
required  to  report  the  charges  made  to  this  account  for  the  various  kinds  of  insur- 
ance, and  for  self-insurance. 

G839.  Relief  Department  and  Pensions. 

Charge  to  this  account  ail  matter-  provided  for  under  the  following  heads: 
Belief   Department   Expenses:      This   head   includes   all   salaries  and  ex- 
'S  incurred  in  connection  with  conducting  a  relief  department;  also  con- 
tributions made  to  such  department. 

Pensions:  This  head  includes  all  pensions  paid  to  retired  employees,  and 
expenses    in   connection    therewith. 

G840.  Gas  Franchise  Requirements. 
Charge  to  this  account  the  cost  of  all  gas  and  other  materials  and  supplies 
furnished  to  municipal  corporations  in  compliance  with  franchise  require- 
ments and  for  which  no  payment  is  received  by  the  corporation;  also  of  all 
direct  expense,  such  as  paving  and  other  like  matters,  incurred  in  compliance 
with  such  requirements  and  for  which  no  reimbursement  is  received  by  the 
corporation.  Amounts  charged  to  this  account  for  which  there  is  no  direct 
money  outlay  shall  be  credited  to  the  below  provided  account  Xo.  GCs.yJ, 
"  Miscellaneous  Adjustments — Balance."'  tinder  the  head  of  •"Duplicate  Gas 
Charges  —  Civ'      (See    page    45.) 

G841.  Residuals  Expense. 

Charge  to  this  account  all  expense  specially  incurred  in  connection  with 
the  utilization  and  sale  of  residuals  and  byproducts,  such  as  coke,  tar, 
ammonia,  carbon,  and  other  residuals  and  byproducts,  etc. 

Note. —  Charges  to  this  account  must  be  made  in  such  wise  as  to  enable  the  cor- 
poration to  show  separately  the  following  matters  :  , 

a.  Coke  expense,  including  the  cost  of  all  labor  and  supplies  specially  consumed 
and  expense  specially  incurred  in  the  disposal  of  coke  over  and  above  what  would 
be  necessitated  by  such  disposition  if  the  coke  were  not  sold.  This  includes  the 
cost  of  any  special  preparation  of  the  coke  for  sale  and  the  cost  of  hauling  such 
coke  to  points  of  delivery. 

b.  Tar  expense,  including  the  cost  of  all  labor  and  supplies  specially  consumed 
and  all  expense  sDecially  incurred  in  the  disposition  of  tar  over  and  above  the  ex- 
pense that  would  be  involved  if  such  tar  were  consumed  by  the  corporation.  If 
both  coal  gas  and  water  gas  are  manufactured,  and  the  resulting  tars  are  separately 
disposed  of,  the  tar  expense  shall  be  stated  for  each. 


42  Public  Service  Commission,  Second  District 

c.  Ammonia  expense,  including  the  cost  of  all  labor  and  supplies  specially  con- 
sumed and  all  expense  specially  incurred  in  the  preparation  and  sale  of  ammonia  or 
ammoniacal  liquor  over  and  above  what  would  be  involved  if  such  liquor  were  con- 
sumed or  wasted  by  the  corporation. 

d.  Other  residuals  and  byproducts  expense,  including  the  cost  of  all  labor  and 
supplies  specially  consumed  and  expense  specially  incurred  in  the  preparation  and 
disposition  of  other  residuals  and  byproducts  than  those  provided  for  under  the 
foregoing  three  heads,  over  and  above  what  would  be  involved  if  such  residuals  and 
byproducts  were  consumed  by  the  corporation  or  wasted. 

G842.  General  Amortization  —  Gas. 

Charge  to  this  account  month  by  month  the  amount  estimated  to  be  neces- 
sary to  cover  such  wear  and  tear  and  obsolescence  and  inadequacy'  as  have 
accrued  during  the  month  in  the  tangible  gas  capital  of  the  corporation, 
such  portion  of  the  life  of  intangible  fixed  capital  as  has  expired  or  been 
consumed  during  the  month,  and  the'  amount  estimated  to  be  necessary  to 
provide  a  reserve  to  cover  the  cost  of  property  destroyed  by  extraordinary 
casualties;  less  the  amounts  charged  for  that  month  to  the  various  repair 
accounts  in  Gas  Operating  Expenses.  The  amount  charged  (or  credited)  to 
this  account  shall  be  concurrently  credited  (or  charged)  to  the  reserve  ac- 
count No.  374,  "Accrued  Amortization  of  Capital".      (See  page  26.) 

Notto  A. —  Until  otherwise  ordered,  the  "  amount  estimated  to  be  necessary  to 
cover  such  wear  and  tear  and  obsolescence  and  inadequacy  as  have  accrued  dur- 
ing "  any  month  shall  he  based  on  a  rule  determined  by  the  accounting  corporation. 
Such  rule  may  be  derived  from  a  consideration  of  the  said  corporation's  history 
and  experience  during  the  preceding  five  years,  and  the  accrual  may  be  on  the 
basis  of  amount  of  gas  sold.  Amortization  of  intangible  capital  shall  likewise  be 
based  on  rule.  Whatever  may  be  its  basis,  such  rules  and  a  sworn  statement  of 
the  facts  and  expert  opinions  and  estimates  upon  which  they  are  based  shall  be 
filed  with  the  Public  Service  Commission  on  or  before  February  1,  1909  ;  each 
amendment  of  any  such  rule  and  a  sworn  statement  of  the  facts  and  expert  opinions 
and  estimates  upon  which  such  amendment  is  based  shall  be  filed  with  the  Public 
Service  Commission  before  it  is  used  by  the  accounting  corporation,  and  shall  show 
the  date  when  it  is  to  be  effective.  Such  rules  and  statements  shall  be  filed  upon 
sheets  9V2  inches  by  12  inches  and  shall  be  entitled  "  Rule  of  the  (hero  naming  the 
accounting  corporation)    concerning   Amortization    of   Capital  ". 

Note  B.  - — When  any  capital  is  retired  from  service,  the  amount  (estimated  if 
not  known)  originally  charged  to  a  capital  account  in  respect  thereof  shall  be 
credited  to  such  capital  account,  and  (except  as  provided  in  account  No.  G100, 
"Fixed  Capital,  December  31,  1908,'")  the  original  money  cost  of  such  capital,  less 
salvage,  if  any,  shall  be  charged  to  the  reserve  account,.  "Accrued  Amortization  of 
Capital,"  any  necessary  adjusting  entry  being  made  in  the  proper  account  under 
"  Corporate  Surplus  or  Deficit ".  Where  capital  is  substantially  continuous  and 
can  not  be  satisfactorily  individualized,  it  shall  be  kept  in  efficient  operating  con- 
dition through  repair,  and  the  renewals  and  replacements  of  parts  thereof  shall  be 
considered  repairs.  In  the  case  of  buildings,  towers,  bridges,  trestles,  and  other 
separate  structures  capable  of  being  readily  individualized,  charges  to  this  account 
must  be  sufficient  to  provide  (in  respect  of  such  capital  and  except  as  provided  in 
account  No.  G100,  "Fixed  Capital,  December  31,  1908,")  in  the  account  "Accrued 
Amortization  of  Capital  "  by  the  time  such  structures  go  out  of  service  a  reserve 
equal  to  the  original  money  cost  thereof,  less  salvage,  to  which  account  such 
original  cost,  less  salvage,  shall  be  charged. 

G847.  Injuries  TO  Persons  and  Property. 
Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 
ACCIDENTS  and  Damages:  This  head  includes  all  expenses  (other  than  law 
expenses  provided  for  under  the  succeeding  head)  on  account  of  persons 
killed  or  injured  and  property  damaged  in  connection  with  the  operation  of 
the  plant,  as  below  classified;  these  classes  must  be  separately  shown  in 
annual  reports  to  the  Public  Service  Commission: 


Accounts  fob  Gas  Corporations  43 

a.  Claim  Department  Expense;  Salaries  and  expenses  of  claim  agents, 
investigators,  adjusters,  and  others  engaged  in  the  investigation  of  accidents 
and  adjustment  of  claims. 

b.  Medical  Expenses:  Salaries,  fees,  and  expenses  of  surgeons  and  doctors; 
nursing,  hospital  attendance,  medical  and  surgical  supplies;  fees  and  expenses 
of  coroners  and  undertakers:  and  contributions  to  hospitals. 

c.  Injuries  to  Employees:  Amounts  paid  in  settlement  of  claims  of  em- 
ployees for  injuries  arising  in  the  course  of  their  employment;  also  wages 
paid  to  disabled  employees  while  off  duty. 

d.  Other  Personal  Injuries  and  Property  Damage:  Amounts  paid  in  settle- 
ment of  claims  of  persons  other  than  employees  for  personal  injuries  sustained 
in  connection  with  the  operation  of  the  plant,  and  amounts  paid  in  settle- 
ment <  f  claim-,  for  damage  to  property  not  owned  by  the  accounting  corpora- 
tion. 

e.  Other  Accident  Expenses. 

Note. — ■  If  it  is  desired  that  the  charge  to  operating  expenses  on  account  of 
accidents  and  damages  shall  be  upon  some  arbitrary  basis,  the  amount  so  charged 
shall  be  credited  to  account  No.  381.  "  Casualties  and  Insurance  Reserve,"  and  the 
actual  disbursements  above  enumerated  shall  be  charged  against  such  reserve 
account. 

Law  Expenses  Connected  with  Damages:  This  head  includes  all  law 
expenses  in  connection  with  tin1  defense  or  settlement  of  damage  claims, 
classified  as  follows; 

f.  Salaries  and  Expenses  of  Attorneys:  A  proper  proportion  of  the  salary 
and  licitor  or  counsel,  and  salaries,  fees,  and 
expenses  of  attorneys  engaged  in  this  work. 

g.  Court  Costs  and  Ea  Fees  of  court  stenographers,  expenses  con- 
nected with  taking  depositions,  and  other  court  exp  i 

h.  Lair  Printing:  Cost  of  law  books,  and  eost  of  printing  briefs,  court 
records,  and  similar  papers. 

Note  A. —  In  their  annual  reports  to  the  Public  Service  Commission  corporations 
will  be  require  1  to  classify  these  matters  under  the  three  heads,   (/),   {g),  h     abov 

given. 

Note  B. —  The  compensation  of  the  general  solicitor  or  counsel  and  other  attor- 
neys engaged  partly  in  the  defense  or  settlement  of  damage  suits  and  partly  in 
other  legal  work  should  be  properly  apportioned  between  this  account  and  account 
No.   G831,  "  General  Administration."'  under  the  head  of  "  General  Law  Expenses  *'. 

Note  C. —  If  it  is  desired  that  the  charge  to  operating  expenses  on  account  of 
law  expenses  in  connection  with  damages  shall  be  upon  some  arbitrary  basis,  the 
amount  so  charged  shall  be  credited  to  account  No.  3S1,  "  Casualties  and  Insurance 
Reserve,"  and  the  actual  disbursements  above  enumerated  shall  be  charged  against 
such  reserve  account. 

G848.  General  Stationery  and  Printing. 

Charge  to  this  account  all  expenses  for  stationery  and  printing,  stationery 
supplies,  and  postage,  except  as  hereinafter  provided: 

The   cost   of   printing   briefs   and   other    legal   papers    shall   be   charged   to 
account   Xo.  (1831.  "General  Administration"    (under  the  head  of  "General  I 
Law   Expenses  •").   or   (iS47.   ••Injuries  to  Persons  and   Property''    (under  the 
head  of  "Law  Expenses  Connected  with  Damages"),  in  accordance  with  the 
purpose  of  the  printing. 

The  cost  of  printing  signs,  posters,  and  other  advertising  matter  shall  be 
charged    to    account    Xo.    G550,    ■•Commercial     E  -.*'    under    the 

head  of  ''Advertising  —  Gas". 


44  Public  Service  Commission,  Second  District 

The  cost  of  such  mechanical  calculators,  typewriters,  duplicating  machines, 
and  other  office  appliances  as  are  not  properly  capitalized,  shall,  if  for  use  in 
general  offices,  be  charged  to  account  No.  G831,  "  General  Administration,'' 
under  the  head  of  "General  Office  Supplies  and  Incidental  Expenses";  or  if 
foi   the  use  of  departmental  officers,  to  the  proper  departmental  accounts. 

G849.  Store  and  Stable  Expenses. 

Charge  to  this  account  all  matters  provided  for  under  the  following  heads: 

Store  Expenses:  This  head  includes  all  salaries  and  expenses  in  con- 
nection with  storerooms,  including  cost  of  sending  materials  and  supplies 
from  general  storerooms  to  branch  storerooms,  and  the  collection  of  scrap 
material. 

Stable  Expenses:  This  head  includes  the  cost  of  feed,  keep,  and  shoeing 
of  horses,  wages  of  stablemen,  hostlers,  veterinary  expenses,  and  all  other 
expenses  of  stabling  horses ;  also  the  cost  of  repairing  harness  and  vehicles. 

Note. —  The  cost  of  horses  purchased  to  replace  others  should  be  charged  to 
account  No.  G122,  "  General  Equipment  ". 

GC852.  Miscellaneous  Adjustments  —  Balance. 

Charge  or  credit  to  this  account  in  accordance  with  the  following  directions : 

Inventory  Adjustments  —  Balance:  At  least  once  a  year  an  inventory 
of  materials  and  supplies  shall  be  taken,  and  the  difference  (in  respect  of 
any  particular  class  of  materials  and  supplies)  between  the  ledger  and  in- 
ventory balances  debited  or  credited  to  this  account  under  this  head  in 
case  it  can  not  be  assigned  to  a  specific  account. 

Discounts  on  Materials  and  Supplies  —  Cr.  :  Credit  to  this  account 
under  this  head  all  discounts  recovered  through  the  prompt  payment  of  bills 
for  materials  and  supplies  consumed  in  operation,  unless  such  discounts  are 
applied  to  the  particular  bills. 

Note. —  Where  materials  and  supplies  have  been  used  in  construction  as  well  as 
in  operation,  a  suitable  proportion  of  the  shortages  or  overages  disclosed  by  the 
inventory  may  be  debited  or  credited  to  account  No.  G283,  "  Miscellaneous  Con- 
struction Expenditures  ". 

Duplicate  Gas  Charges  —  Cr.  :  Credit  to  this  account  under  this  head 
all  charges  made  to  any  accounts  in  gas  operating  expenses  in  respect  of  any 
gas  or  other  product  of  gas  operations   of  the  corporation  consumed  therein. 

Gas  Expenses  Transferred  —  Cr.  :  Credit  to  this  account  under  this  head 
the  proportion  of  operating  expenses  (including  depreciation  and  other  amorti- 
zation as  well  as  repairs)  chargeable  to  other  coordinate  departments  (such 
as  electric  or  street  railroad)  within  the  same  corporation,  but  defrayed  in 
the  first  instance  by  the  gas  department. 

Note. —  Do  not  credit  to  this  account  any  allowance  in  the  nature  of  rent  or 
return  upon  the  cost  or  value  of  property. 

Joint  Operating  Expense — -Cr.:  When  any  plant  or  equipment  is  main- 
tained or  operated  by  the  accounting  corporation  for  the  joint  benefit  of  itself 
and  others  under  an  arrangement  for  apportioning  (on  the  basis  of  the  relative 
amounts  of  benefit  to  the  several  participants)  the  operating  expenses,  the 
portion  of  such  expenses  chargeable  to  others  under  the  arrangement  shall 
be  credited  to  this  account  under  this  head.  The  portion  so  credited  must 
not  include  any  allowance  for  profit  or  return  upon  the  value  of  such 
property. 

Note  A. —  The  foregoing  should  be  read  in  connection  with  the  definition  of 
revenue  account  No.  443,  "Joint  Gas  Rent  Revenue".     (See  page  32.) 


Accounts  for  Gas  Corporations         45 

Note  B. —  In  the  case  of  the  production  of  gas  part  of  which  is  transferred 
to  another,  if  the  arrangement  under  which  such  production  occurs  does  not  provide 
for  the  apportionment  of  expenses,  the  entire  amount  charged  for  the  portion  sup- 
plied is  to  be  credited  to  the  appropriate  revenue  account  covering  the  sale  of  gas. 
(See  account  No.  438,  "Other  Gas  Corporations,"   page   31.) 

17.  Expenses  of  Outside  Operations. —  The  detailed  expense  accounts  for 
other  than  gas  operations  will  be  elsewhere  provided  for. 

1 8.  Tax  accounts. — An  account  shall  be  kept  of  the  taxes  chargeable  against 
each  particular  class  of  operations,  and  one  for  those  chargeable  against  non- 
operating  revenues.  Each  tax  account  shall  be  appropriately  entitled  (as 
e.  g.,  "  Taxes  Assignable  to  Gas  Operations,"  "  Taxes  Assignable  to  Non- 
operating  Revenues,"  etc.),  and  shall  be  so  kept  as  to  show  separately  the 
following: 

State  Franchise  Tax  on  Capital  Stock, 

State  Franchise  Tax  on  Gross  Earnings, 

Special  Franchise  Tax, 

Taxes  on  Land  (exclusive  of  improvements), 

Taxes  on  Improvements  on  Lands, 

Taxes  on  Personal  Property, 

Other  Ta&es   (showing  in  detail). 

To  each  tax  account  there  shall  be  charged  monthly  the  amount  of  taxes 
accruing  during  the  month,  and  such  amount  shall  be  concurrently  credited 
to  the  account  "  Taxes  Accrued  "  ( or  to  the  account  "  Prepaid  Taxes,"  if  such 
tax  is  prepaid).  The  amount  of  taxes  accruing  during  any  month  shall, 
where  the  levy  is  unknown,  be  estimated  as  nearly  as  may  be,  and  when  the 
levy  is  ascertained  the  matter  shall  be  adjusted  during  the  remainder  of  the 
tax  year.  For  example,  if  at  the  beginning  of  a  tax  year  the  taxes  on  a 
particular  class  of  property  are  estimated  to  be  $600  for  the  year,  the  monthly 
charge  on  account  of  such  tax  should  be  $50  until  the  amount  of  the  levy 
becomes  known.  If  during,  say  the  fifth  month,  it  is  found  that  the  levy 
for  the  year  is  $640,  there  will  already  have  been  charged  up  four  months  at 
$50  per  month,  leaving  $440  to  be  charged  during  the  remainder  of  the  year, 
or  $55  for  the  fifth  month  and  each  month  thereafter  during  the  remainder  of 
the  year. 

Such  taxes  as  pertain  to  two  or  more  classes  of  operations  or  to  non- 
operating  revenues  should  be  apportioned  with  regard  to  such  operations  and 
non-operating  revenues  upon  an  equitable  basis,  which  basis  will  be  required 
to  be  reported  in  the  annual  report  of  the  corporation  to  the  Public  Service 
Commission. 

19.  Uncollectible  Bills. —  For  uncollectible  gas  bills  the  following  account  is 
provided : 

G870.  Uncollectible  Gas  Bills. 
When,  after  a  reasonably  diligent  effort  to  collect,  any  account  stated  for 
gas  sold  has  proved   impracticable  of  collection,   it  shall  be  charged  to   this 
account  and  credited  to  the  account  receivable  in  which  theretofore  charged. 

20.  Definitions  of  Non-operating  Revenue  accounts. —  In  the  following  defini- 
tions of  accounts  the  letters  and  numbers  prefixed  to  the  titles  are  inserted 
solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or  of  the 
definitions : 


46  Public  Service  Commission,  Second  District 

GOOlb.  Rent  Accrued  from  Lease  of  Gas  Plant. 
Credit  to  this  account  monthly  as  they  accrue  all  revenues  flowing  to  the 
corporation  from  its  interests  in  gas  plant  or  equipment  held  by  others  under 
some  form  of  lease  whereby  it  surrenders  possession  of  such  property.  This 
account  contemplates  that  the  taxes  on  property  so  held  are  payable  by  the 
tenant  in  possession  and  charged  by  him  to  the  appropriate  tax  account. 
If  under  the  contract  of  lease  such  taxes  are  payable,  by  the  lessor  (or  its 
assignee),  such  taxes  shall  be  charged  to  this  revenue  account  and  not  to  any 
of  the  lessor's  tax  accounts,  nor  to  any  of  its  expense  accounts. 

G901d.  Miscellaneous  Eent  Revenues. 

Credit  to  this  account  monthly  as  they  accrue  all  miscellaneous  rent  reve- 
nues flowing  to  the  corporation  as  a  return  upon  leased  property  other  than 
gas  plant  and  equipment.     Such  revenues  shall  be  classified  as  follows: 

Leasehold  Revenues:  That  is  to  say,  all  revenues  flowing  to  the  corpora- 
tion from  its  interests  in  property  held  by  others  under  any  lease  the  entire 
term  of  which  is  greater  than  one  year.  This  contemplates  that  the  taxes 
on  property  so  held  are  payable  by  the  tenant  in  possession  and  charged  by 
him  to  the  appropriate  tax  account.  If  under  the  contract  of  lease  such  taxes 
are  payable  by  the  lessor  (or  its  assignee),  such  taxes  shall  be  charged  to 
this  revenue  account  and  not  to  any  of  the  lessor's  tax  accounts,  nor  to  any  of 
its  expense  accounts. 

Other  Rent  Revenues:  That  is  to  say,  all  revenues  flowing  to  the  corpora 
tion  from  its  interests  in  property  held  by  others  under  any  lease  or  contract 
for  a  term  not  to  exceed  one  year  from  the  beginning  of  the  term,  or  held  at 
will  or  upon  sufferance.  This  sub-account  contemplates  that  the  taxes  on  prop- 
erty of  this  character  shall  be  paid  by  the  landlord  and  charged  to  the  appro- 
priate tax  account.  If  under  the  contract  covering  the  holding  for  term* 
of  one  year  or  less,  or  at  will,  the  taxes  are  to  be  paid  by  the  tenant,  the 
amount  of  such  taxes  shall  be  credited  month  by  month  to  this  account  aa 
they  accrue,  and  shall  correspondingly  be  charged  to  the  tax  account  covering 
taxes  on  property  of  this  character. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately  in 
the  annual  reports  to  the  Public  Service  Commission. 

902.  Interest  Revenues. 

Credit  to  this  account  monthly  as  it  accrues  all  — 

Interest  from  Bound  Investments :  That  is  to  say,  all  interest  accruing  to 
the  corporation  upon  such  of  its  interest-bearing  bound  investments  (as  here- 
inbefore defined)    as  are  liabilities  of  solvent  concerns  and  individuals. 

Interest  from  Free  Investments:  That  is  to  say,  all  interest  accruing  to 
the  corporation  upon  such  of  its  interest-bearing  free  investments  (as  herein- 
before defined)   as  are  liabilities  of  solvent  concerns  and  individuals. 

Interest  from  Other.  Sources:  That  is  to  say,  all  interest  accruing  to  the 
corporation  upon  its  interest-bearing  current  assets,  special  deposits,  and  all 
other  assets  not  provided  for  under  the  two  foregoing  heads,  where  such 
interest  is  a  liability,  actual  or  contingent,  of  solvent  concerns  and  individuals. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately 
in  the  annual  reports  to  the  Public  Service  Commission. 


Accounts   for   Gas  Corporations  47 

903.  Dividend  Revenues. 

Credit  to  this  account  at  their  cash  value,  and  as  of  the  date  when  col- 
lectible, all  — 

Dividends  on  Bound  Investments:  That  is  to  say,  all  dividends  declared 
by  solvent  concerns  upon  stocks  held  by  the  corporation  among  its  bound 
investments. 

Dividends  on  Free  Investments:  That  is  to  say,  all  dividends  declared  by 
solvent  concerns  upon  stocks  held  by  the  corporation  among  its  free  invest- 
ments. 

Entries  in  this  account  must  be  made  in  such  wise  as  to  show  separately 
the  classes  above  indicated,  which  will  be  required  to  be  stated  separately  in 
the  annual  reports  to  the  Public  Service  Commission. 

904.  Profits  from  Operations  of  Others. 

Whenever,  in  accordance  with  the  terms  of  any  contract,  the  corporation 
is  entitled  to  participate  in  the  profits  resulting  from  the  operations  of  others, 
all  revenues  accruing  to  the  corporation  from  such  source  shall  be  credited 
to  this  account. 

Note. —  This  account  does  not  include  any  dividends  on  stocks.  Such  dividends 
should  be  credited  to  account  No.  903,   "  Dividend  Revenues  ". 

905.  Miscellaneous  Non-operating  Revenues. 
To  this  account  shall  be  credited  all  non-operating  revenues  accruing  to  the 
corporation  and  not  provided  for  in  any  of  the  foregoing  accounts. 

i2.  Definition  of  Non-operating  Revenue  Deductions  account. —  To  an  ac- 
count entitled  "  Non-operating  Revenue  Deductions  "  shall  be  charged  all  mat- 
ters provided  for  under  the  following  sub-accounts : 

a.  Rent  Expense:  This  sub-account  includes  all  matters  provided  for  under 
the  following  two  heads: 

Leasehold  Expense:  That  is  to  say,  all  expense  arising  in  connection  with 
the  procuring  of  revenues  from  leaseholds  having  terms  greater  than  one  year, 
including  the  cost  of  negotiating  contracts,  advertising  for  tenants,  fees  paid 
conveyancers,  collector's  commissions,  cost  of  enforcing  payment  of  rent,  cost 
of  ousting  tenants,  etc.,  and  all  other  expense  arising  in  connection  with  such 
leaseholds.  This  applies  only  to  leases  conveying  the  property  out  of  the 
possession  of  the  corporation,  and  it  includes  the  expense  accruing  while  the 
property  is  idle  and  awaiting  an  occupant.  This  head  includes  cost  of  mainte- 
nance of  the  property  when  such  cost  is  borne  by  the  corporation.  Such 
maintenance  includes  depreciation  as  well  as  reparable  wear  and  tear.  It 
does  not  include  taxes. 

Other  Rent  Expense:  This  head  is  analogous  to  the  preceding  head  "Lease- 
hold Expense,"  and  differs  from  that  only  in  that  this  provides  for  expense  in 
connection  with  property  let  for  a  term  of  one  year  or  less. 

6.  Interest  Expense:  This  sub-account  includes  all  expense  arising  in 
connection  with  procuring  interest  upon  investments,  such  as  expense  of  col- 
lection, expense  of  investigating  delay  in  payment,  expense  of  enforcing  pay- 
ment, and  the  like.     It  does  not  include  taxes  on  such  investments. 

c.  Dividend  Expense:  This  sub-account  includes  all  expense  arising  in 
connection  with  the  collection  of  dividends  on  stocks  of  other  corporations; 
also  all  expense  incurred  in  the  investigation  of  the  affairs  of  the  corporations 
whose  stocks  are  held,  whether  for  the  purpose  of  detecting  mismanagement 


48  Public  Slkvice  Commission,  Second  District 

or  for  the  purpose  of  inducing  the  declaration  of  dividends,  and  all  expense 
connected  with  enforcing  payment  of  dividends  when  declared.  It  does  not 
include  taxes  on  such  investments. 

d.  Others'  Operations  Expense:  This  sub-account  includes  the  cost  of 
negotiating  contracts  whereunder  the  corporation  is  to  participate  in  profits 
resulting  from  the  operations  of  others;  also  all  expense  of  collecting  the  cor- 
poration's proportion  of  such  profits,  and  all  expense  connected  with  procuring 
the  modification  or  the  dissolution  of  any  such  contract. 

e.  Miscellaneous  Non-operating  Expense:  This  sub-account  includes  all 
non-operating  expense  (as  hereinbefore  defined)  which  is  not  provided  for  in 
the  foregoing  sub-accounts. 

/.  Non-operating  Taxes  :  This  sub-account  includes  all  taxes  accruing  upon 
non-operating  property  and  all  assignable  to  non-operating  revenues. 

g.  Uncollectible  Non-operating  Revenues:  When  any  non-operating 
revenues  are  judged  by  the  corporation  to  be  uncollectible,  the  amount'  thereof 
shall  be  credited  to  the  account  in  which  theretofore  charged,  and  charged 
to  the  account  "  Non-operating  Revenue  Deductions  "  under  the  head  of  "  Un- 
collectible Non-operating  Revenues  ". 

Note. — In  annual  reports  of  corporations  to  the  Public  Service  Commission  this 
account  will  be  required  to  be  fully  analyzed. 

22.  Income  Deductions.—  The  sum  total  of  the  credit  balances  in  the  revenue 
accounts  for  any  particular  operation  at  the  close  of  a  fiscal  period  gives 
the  gross  revenue  from  that  operation  for  that  period.  This  gross  revenue 
diminished  by  the  operating  expenses,  the  taxes,  and  the  uncollectible  bills 
assignable  to  such  operation  for  the  period,  gives  the  income  from  that  opera- 
tion for  the  period.  Similarly  for  the  non-operating  revenues,  the  non-operat- 
ing expenses,  and  the  non-operating  taxes. 

The  aggregate  of  the  incomes  from  the  several  operations  and  the  non- 
operating  income  is  the  gross  income  applicable  to  corporate  and  leased  prop- 
erties. As  has  before  been  said,  the  gross  income  is,  in  the  usual  case,  subject 
to  various  compulsory  deductions,  and  these  are  hereinafter  called  Income 
Deductions. 

23.  Definitions  of  Income  Deduction  accounts. —  In  the  following  definitions 
the  letters  and  numbers  prefixed  to  the  titles  of  the  several  accounts  are 
inserted  solely  for  convenience  of  reference  and  are  no  part  of  the  titles  or 
of  the  definitions: 

921.  Interest  Deductions. 

Charge  to  this  account  monthly  (or  as  otherwise  below  directed)  all  mat- 
ters provided  for  under  the  following  five  heads: 

Absolute  Interest  Accrued  on  Funded  Debt:  This  head  includes  all  interest 
accruing  absolutely  on  the  outstanding  funded  debt  of  the  corporation. 

Contingent  Interest  Accrued  on  Funded  Debt:  This  head  includes,  when  the 
contingency  occurs,  all  interest  accruing  contingently  on  the  outstanding 
funded  debt  of  the  corporation.  This  includes  such  matters  as  interest  on 
income  bonds. 

Interest  Accrued  on  Receiver's  Certificates :  This  head  includes  all  interest 
accruing  on  receiver's  certificates  which  are  liens  upon  the  property  of  the 
corporation  or  any   part  of  it. 

Interest  Accrued  on  Other  Unfunded  Debt:  This  head  includes  all  interest 
accruing  on  all  unfunded  debt  of  the  corporation  except  receiver's  certificates. 


Accounts  for  Gas  Corporations         49 

Interest  Accrued  on  Debenture  Stocks:  This  head  includes  all  interest  ac- 
cruing on  the  outstanding  debenture  stocks  of  the  corporation. 

Entries  in  the  account  "  Interest  Deductions  "  must  be  made  in  such  wise 
as  to  show  separately  the  classes  above  indicated,  which  will  be  required  to 
be  stated  separately  in  the  annual  reports  to  the  Public  Service  Commission. 

922b.  Rent  for  Lease  of  Other  Gas  Plant. 
Charge  to  this  account  monthly  all  amounts  accrued  against  the  account- 
ing corporation  for  rent  of  gas  plant  and  equipment  which  it  holds  under  some 
form  of  lease  from  another  company  or  corporation  and  of  which  it  has  the 
exclusive  possession.  Taxes  accrued  on  such  plant  and  equipment  shall  not  be 
charged  to  this  account  but  to  the  appropriate  Taxes  account.  If  such  taxes 
are  (under  the  contract  of  lease)  payable  by  the  lessor  or  reversioner,  they 
shall  be  credited  to  this  account  and  charged  to  the  appropriate  Taxes  account. 
Such  taxes,  when  paid  by  the  lessor  or  reversioner,  shall  be  charged  to  its 
rent  revenue  account  and  not  to  its  Taxes  account,  to  the  end  that  taxes 
upon  such  plant  and  equipment  shall  be  reported  by  the  corporation  in 
possession. 

922.  Other    Rent    Deductions. 

Charge  to  this  account  the  matters  provided  for  in  the  following  sub- 
accounts : 

/.  Joint  Facility  Rents:  Where  any  plant  or  equipment  is  maintained 
or  operated  by  another  corporation  for  the  joint  benefit  of  the  accounting  cor- 
poration and  others  under  a  joint  arrangement  for  sharing  the  expense  (on 
the  basis  of  the  relative  amounts  of  benefit  to  the  several  participants),  if 
such  joint  arrangement  provides  for  including  in  the  charge  against  the  ac- 
counting corporation  any  pure  rent,  profit,  or  return  upon  such  plant  or 
equipment  over  and  above  depreciation  and  other  expense  of  maintenance 
and  operation,  such  pure  rent,  or  profit,  or  return  upon  property  shall  be 
charged  to  this  sub-account. 

Note. —  This  should  he  read  in  connection  with  revenue  account  No.  443,  "  Joint 
Gas  Rent  Revenue".     (See  page  32.) 

g.  Miscellaneous  Rent  Deductions  :  This  sub-account  includes  all  mis- 
cellaneous  rents  payable  not  elsewhere   provided  for. 

Note  A. —  Rents  for  furnished  offices  (and  for  office  rooms  in  office  buildings 
heated  and  lighted  by  the  landlord)  should  not  be  charged  to  this  account,  but  to 
the  appropriate  expense  account. 

Note  B. —  Entries  in  this  account  must  be  made  in  such  wise  as  to  permit,  an 
analysis  in  the  annual  report  of  the  corporation  in  accordance  with  the  sub- 
accounts above  defined. 

923.  Sinking  Fund  Accruals. 

Charge  to  this  account  month  by  month  all  accruals  required  to  be  made 
to  sinking  funds  in  accordance  with  the  provisions  of  mortgages  or  other 
contracts  requiring  the  establishment  of  sinking  funds.  All  accruals  to  sink- 
ing or  other  funds  created  voluntarily  by  the  corporation  and  not  in  pursu- 
ance of  the  provisions  of  any  mortgage  or  other  contract  or  of  the  require- 
ments of  law  shall  be  excluded  herefrom. 

924.   Guaranties  of  Periodic   Payments. 
Charge  to  this  account  all  unsecured  accruals  of  obligations  arising  under 
contracts  whereby  the   corporation  has   guaranteed  the   annual   or   more  fre- 
quent periodic  payment  of  money  or  performance  of  other  obligation  on  the 


50  Public  Sekviue  Commission,  Second  Dis 


tiuct 


part  of  another  corporation  or  person,  and  because  of  the  default  of  such 
other  corporation  or  person  the  liability  of  the  present  corporation  has  be- 
come actual.  This  account  does  not  include  such  matters  as  guaranties  of 
payment  of  principal  of  funded  debt  and  other  similar  things  relating  to  a 
series  of  years,  nor  does  it  include  any  guaranties  for  which  the  corporation 
has  protected  itself  through  taking  ample  security.  If  insufficient  security 
has  been  taken  in  respect  of  such  annual  or  more  frequent  payments,  the 
unsecured  portion  thereof  shall  be  charged  to  this  account. 

925.   Loss  ox   Operations  of   Others. 
Whenever  in  accordance  with  the  terms  of  any  contract  the  corporation  is 
bound  to  contribute  toward   reimbursement  of  the   losses  resulting  from  the 
operations   of   others,    all    liabilities    accruing   to    the    coloration    from   such 
source  shall  be  charged  to  this  account. 

926.  Other  Contractual   Deductions  from   Income. 

Charge  to  this  account  month  by  month  all  contractual  liabilities  arising 
from  annual  or  other  more  frequent  periodic  matters  and  not  includible  in 
any  of  the  foregoing  accounts.  This  account  includes  only  deductions  from 
income  and  not  any  liabilities  arising  in  exchange  for  goods  or  other  things 
purchased. 

927.  Amortization  of  Landed  Capital. 

Charge  to  this  account  at  the  close  of  any  fiscal  period  such  proportion  of 
the  original  money  cost  (estimated  if  not  known)  of  landed  capital  as  is 
necessary  to  cover  the  proportion  of  the  life  thereof  expired  during  such 
period. 

Note  A. —  The  amounts  charged  to  this  account  shall  be  concurrently  credited  to 
account  No.  374,   "Accrued  Amortization  of  Capital  ".     (See  page  20.) 

Note  B. —  When  any  landed  capital  expires  or  is  otherwise  retired  from  service 
«as  e.  g.,  through  sale),  the  capital  account  or  other  indicant  account  (if  any) 
originally  charged  therewith  shall  be  credited  with  the  amount  originally  charged, 
the  account  "Accrued  Amortization  of  Capital  "  shall  be  debited  with  all  amounts 
theretofore  credited  to  such  account  in  respect  of  such  landed  capital  so  going  out 
of  service,  the  appropriate  account  shall  he  debited  with  the  proceeds  of  sale  (if 
any),  and  any  necessary  adjustment  shall  be  made  through  the  "Corporate  Surplus 
or  Deficit  "  account. 

928.  Amortization  of  Debt  Discount  and  Expense. 
Charge  to  this  account  at  or  before  the  close  of  any  fiscal  period  that  pro- 
portion of  the  unamortized  discount  and  debt  expense  on  outstanding  debt 
which  is  applicable  to  the  period.  This  proportion  shall  be  determined  ac- 
cording to  a  rule,  the  uniform  application  of  which  during  the  interval  be- 
tween the  issue  and  the  maturity  of  any  debt  will  completely  amortize  or 
wipe  out  the  discount  at  which  such  debt  was  issued  and  the  debt  expense 
connected  therewith.  Such  amortization  may  at  the  option  of  the  corporation 
be  earlier  effected  by  charging  all  or  any  portion  of  such  discount  and  debt 
expense  to  account  No.  939,  "  Other  Deductions  from  Surplus,"  immediately 
upon  issue  of  the  debt  or  thereafter. 

929.  Amortization    of   Premium   on   Debt  —  Cr. 
Credit  to  this  account  at  or  after  the  close  of  any  fiscal  period  the  propor- 
tion of  the  premium  at  which  outstanding  debt  was  issued  which  is  applicable 
to  the  period.     This  proportion  shall  be  determined  according  to  a  rule,  the 
uniform  application  of  which  during  the  interval  between  the  issue  and  the 


Accounts  fob   Gas  Cokpobatioks  51 

maturity  of  any  debt  will  completely  amortize  or  wipe  out  the  premium  at 
which  such  debt  was  issued.  Such  amortization  may  at  the  option  of  the 
corporation  be  effected  by  crediting  all  or  any  portion  of  such  premium  to 
account  No.  931b,  "Other  Additions  to  Surplus/'  only  upon  the  maturity  of 
the  debt. 

24.  Appropriations. —  The  balance  resulting  from  closing  the  foregoing 
income  deduction  accounts  for  any  fiscal  period  into  gross  income  for  that 
period  gives  the  Net  Corporate  Income  for  the  period.  The  net  corporate 
income  being  of  the  same  nature  as  the  corporate  surplus  shall  be  closed  into 
the  "  Corporate  Surplus  or  Deficit  "  account.  The  group  of  accounts  which 
show  for  any  fiscal  period  the  changes  in  the  "  Corporate  Surplus  or  Deficit " 
account  are  designated  the  Appropriation  accounts,  for  the  reason  that  sub- 
stantially all  of  them  are  subject  onl\  to  the  discretion  of  the  corporation. 
At  the  end  of  each  fiscal  period  each  of  the  appropriation  accounts  shall  be 
closed  into  the  "  Corporate  Surplus  or  Deficit "  account. 

25.  Definitions  of  Appropriation  accounts. —  In  the  following  definitions  o! 
the  appropriation  accounts  the  letters  and  numbers  prefixed  to  the  titles  of 
the  accounts  are  inserted  solely  for  convenience  of  reference  and  are  no  part 
of  the  titles  or  of  the  definitions : 

931a.  Bad   Debts    Collected. 
When  any  debt  theretofore  written  off  as  a  bad  debt  is  collected,  the  amount 
of  the  collection  shall  be  credited  to  this  account.     Expense  involved  in  such 
collection  shall  be  charged  to  this  account. 

931b.  Other  Additions  to  Surplus. 
Credit  to  this  account  all  additions  to  surplus  because  of  erroneous  account- 
ing in  prior  fiscal  periods,   and  all  other  additions   to  surplus  not  elsewhere 
provided  for. 

NOTE. —  A  complete  analysis  of  this  account  will  be  required  in  annual  reports  of 
corporations  to  the  Public  Service  Commission. 

932.  Expenses  Elsewhere  Unprovided  For. 

Charge  to  this  account  all  expenses  not  chargeable  as  a  part  of  operating 
expenses  or  of  non-operating  expenses,  such  as  fines  levied  on  the  corporation 
for  violation  of  law,  for  misfeasance,  for  non-feasance,  etc..  fines  levied  on 
directors,  officers,  and  other  employees  and  assumed  by  the  corporation,  dona- 
dons  to  funds,  to  churches  and  other  associations,  and  other  like  expenses 
and  outgoes. 

933.   Dividends  on   Outstanding   Stocks. 

When  any  dividend  is  declared  upon  any  outstanding  stocks  of  the  corpo- 
ration, the  amount  of  such  dividend  shall  thereupon  be  charged  to  this  ac- 
count. All  entries  to  this  account  shall  show  the  amount  of  stock  upon  which 
the  dividend  is  declared,  the  class  of  such  stock,  and  the  rate  of  the  dividend 
as  well  as  the  amount  thereof;  and  if  the  dividend  is  payable  in  any  other 
thing  than  money,  such  thing  shall  be  described  in  the  entry  with  sufficient 
particularity  to  identify  it,  and  the  actual  money  value  thereof  shall  be 
stated  as  the  amount  of  the  dividend. 

When  any  dividend  is  declared  upon  the  stocks  of  the  corporation  held  in 
its  treasury,  the  amount  of  such  dividend  thereon  shall  be  credited  to  this 
account.  Entries  of  credits  to  this  account  shall  be  made  with  the  same  de- 
gree of  particularity  as  is  prescribed  in  the  preceding  paragraph. 


52  Public  Service  Commission,  Second  District 

934.  Amortization  Elsewhere  Unprovided   For. 
Charge  to  this  account  such  amortization  as  is  not  elsewhere  provided  for. 
This  account  provides  for  all  optional  amortization,  such  as  that  of  discount 
on   stocks   outstanding,   abandoned  property,   etc. 

935.  Appropriations  to  Reserves. 
Charge  to  this  account  all  optional  appropriations  to  reserves. 

936.  Gifts  to  Controlled  Corporations. 
Charge  to  this  account  all  gifts  made  by  the  corporation  to  its  controlled 
corporations,  also  such  portions  of  all  advances  thereto  as  are  not  carried'  as 
assets. 

937.  Other  Appropriations. 
Charge  to  this  account  all  optional  appropriations  made  by  the  corpora- 
tion and  not  elsewhere  provided  for. 

Note. —  A  complete  analysis  of  this  account  will  be  required  in  annual  reports  of 
corporations  to  the  Public  Service  Commission. 

938.  Bad  Debts  Written  Off. 

Charge  to  this  account  the  amount  by  which  debts  are  written  off  from  the 
accounts  of  the  corporation  when  they  become  stale  and  are  placed  in  the 
"  bad  debt"  class. 

Note. —  Such  "  uncollectible  bills  "  as  have  been  provided  for  in  the  heretofore 
denned  "  Uncollectible  Bills "  account  must  not  be  included  in  this  account. 

939.  Other  Deductions  from  Surplus. 

Charge  to  this  account  all  deductions  from  surplus  because  of  erroneous 
accounting  in  prior  fiscal  periods,  and  all  other  deductions  from  surplus  not 
elsewhere  provided  for. 

Note. —  A  complete  analysis  of  this  account  will  be  required  in  annual  reports  of 
corporations  to  the  Public  Service  Commission. 


LIST  OF  ACCOUNTS. 


SCHEDULE  A:  BALANCE  SHEET  OR  INDICANT  ACCOUNTS. 

Fixed  Capital.  page 

G100.  Fixed  Capital,  December  31,  1908 9 

G110.  Land  Devoted  to  Gas  Operations 9 

101.  Organization 10 

G102.  Franchises  (Gas) 10 

G103.  Patent-rights  (Gas) 11 

G104.  Other  Intangible  Gas  Capital 11 

G121.  General  Structures 11 

G122.  General  Equipment 12 

221.  Works  and  Station  Structures 12 

222.  Holders 13 

G141a.  Furnaces,  Boilers,  and  Accessories 13 

Gl41b.  Steam  Engines 13 

Gl43b.  Gas  Engines 13 

G145.  Miscellaneous  Power  Plant  Equipment 13 

223.  Benches  and  Retorts 13 

Gl43a.  Water  Gas  Sets  and  Accessories 13 

224.  Purification  Apparatus 14 

225.  Accessory  Equipment  at  Works 14 

231.  Trunk  Lines  and  Mains 14 

232.  Gas  Services 14 

233    Gas  Meters 14 

234.  Gas  Meter  Installation 14 

235.  Municipal  Street  Lighting  Fixtures  (Gas) 15 

236.  Gas  Engines  and  Appliances 15 

237.  Gas  Tools  and  Implements 15 

238.  Gas  Laboratory  Equipment 15 

239.  Other  Tangible  Gas  Capital 15 

G281.  Engineering  and  Superintendence 15 

G282.  Law  Expenditures  During  Construction 16 

G283.  Injuries  During  Construction 16 

G284.  Taxes  During  Construction 16 

G285.  Miscellaneous  Construction  Expenditures 16 

G286.  Interest  During  Construction 17 

OHO.  Land  in  Other  Departments 17 

0102.  Franchises  in  Other  Departments 17 

0103.  Patent-rights  in  Other  Departments 17 

0104.  Other  Intangible  Capital  in  Other  Departments 18 

O120.  Tangible  Capital  in  Other  Departments 18 

Floating  Capital. 

G10.  Materials  and  Supplies 18 

1.  Cash 18 

2.  Bills  Receivable 19 

3.  Accounts  Receivable 19 

4.  Interest  and  Dividends  Receivable 19 

5.  Other  Current  Assets 19 

Investments. 

300.  Investments 19 

Special  Deposits. 

311    Coupon  Special  Deposits 20 

312.  Dividend  Special  Deposits 20 

313    Other  Special  Deposits 20 

[53] 


54         Public  Service  Commission,  Second  District 

Prepayments.  page 

321.  Prepaid  Taxes 21 

322.  Prepaid  Insurance 21 

323.  Prepaid  Rents 21 

324    Other  Prepayments 21 

Suspense  Accounts. 

331.  Unamortized  Debt  Discount  and  Expense 21 

332.  Other  Suspense 22 

Re- acquired  Securities. 

340.  Re-acquired  Securities 22 

Debt. 

360.  Funded 23 

Unfunded 23 

351.  Ta^es  Accrued 23 

352.  Receiver's  Certificates 23 

353.  Judgments  Unpaid 24 

354.  Interest  Accrued 24 

355.  Dividends  Declared 24 

356.  Bills  Payable 24 

G357a.       Consumers'  Deposits  —  Gas 24 

357b.       Other  Accounts  Payable 24 

358.       Other  Unfunded  Debt 25 

Reserves. 

Permanent - 25 

371.  Premiums  on  Stocks 25 

372.  Other  Permanent  Reserves 25 

Temporary 25 

373.  Contractual 25 

Non-contractual 25 

.    Required 26 

374.  Accrued  Amortization  of  Capital 26 

375.  Unamortized  Premium  on  Debt 26 

376.  Other  Required  Reserves 26 

Optional 26 

381.  Casualties  and  Insurance  Reserve 26 

382.  Other  Optional  Reserves 27 

Stocks. 

390.  Stocks 27 

SCHEDULE  B:  INCOME  ACCOUNT. 

Operating  Revenues. 

431.  Municipal  Street  Lighting  —  Gas 30 

432.  Lighting  Municipal  Buildings  —  Gas 30 

433.  Municipal  Heat  and  Power  —  Gas 31 

434.  Miscellaneous  Gas  Revenue  —  Municipal. 31 

435.  Prepaid  Gas 31 

436.  Commercial  Metered  Lighting  —  Gas 31 

437.  Commercial  Heat  and  Power  —  Gas 31 

438.  Other  Gas  Corporations 31 

439.  Commissions  on  Others'  Gas 31 

440.  Rent  of  Gas  Appliances 31 

441.  Gas,  Merchandise,  and  Jobbing  Revenue 32 

442.  Sale  of  Residuals  and  Byproducts 32 

443.  Joint  Gas  Rent  Revenue. 32 

444.  Other  Miscellaneous  Gas  Revenue 32 

Operating  Expenses. 

I.   Production  Expenses. 

601.  Works  Superintendence  and  Labor 34 

602.  Boiler  Fuel 34 


List  of  Acgojnts  >••  •    •••  •'••*  ,;  •  •*'"•    55 


PAGE 

603.  Water 34 

604a.  Fuel  Under  Retorts 34 

604b.  Coal  Carbonized 35 

605.  Coal  Gas  Enricher 35 

606.  Generator  Fuel 35 

607.  Water  Gas  Oil 35 

608.  Purification  Supplies 35 

609.  Miscellaneous  Works  Expense 35 

610.  Repairs  of  Works  and  Station  Structures 35 

GC508.  Repairs  of  Power  Plant  Equipment 36 

GC611.  Repairs  of  Gas  Apparatus 36 

615.  Repairs  of  Works  Tools 37 

616.  Gas  Storage 37 

617.  Gas  from  Other  Sources 37 

77.   Transmission  and  Distribution  Expenses. 

631.  Transmission  Pumping 37 

C632.  Distribution  Superintendence,  Supplies,  and  Expenses 37 

634.  Work  on  Meters  and  Consumers'  Premises , 38 

C635.  Repairs  of  Gas  Mains  and  Services 38 

637.  Repairs  of  Gas  Meters 39 

638.  Repairs  of  Distribution  Tools 39 

639.  Repairs  ol  Gas  Appliances 39 

777.  Municipal  Sheet  Lighting  Expenses 

640.  Street  Lamp  Operation  and  Repairs 39 

IV.     Commercial  Expenses. 

G550.  Commercial  Expenses  —  Gas 39 

V.     General  and  Miscellaneous  Expenses. 

G831.  General  Administration 40 

G838.  Insurance 41 

G839.  Relief  Department  and  Pensions 41 

G840.  Gas  Franchise  Requirements 41 

G841.  Residuals  Expense 41 

G842.  General  Amortization  —  Gas 42 

G847.  Injuries  to  Persons  and  Property 42 

G848.  General  Stationery  and  Printing 43 

G849.  Store  and  Stable  Expenses 44 

GC852.  Miscellaneous  Adjustments  —  Balance 44 

Vaxes. 

G860.  Taxes 45 

G870.  Uncollectible  Gas  Bills 45 

NOX-OPERATIXG    REVENUES. 

G901b.  Rent  Accrued  from  Lease  of  Gas  Plant 46 

G901d.  Miscellaneous  Rent  Revenues 46 

902.  Interest  Revenues 46 

903.  Dividend  Revenues 47 

904.  Profits  from  Operations  of  Others. 47 

905.  Miscellaneous  Non-operating  Revenues 47 

Non-operating  Revenue  Deductioxs. 

Non-operating  Revenue  Deductions 47 

a.  Rent  Expense 47 

b.  Interest  Expense • ; 47 

c.  Dividend  Expense 47 

d.  Others'  Operations  Expense 48 

e.  Miscellaneous  Non-operating  Expense 48 

f.  Non-operating  Taxes 48 

g.  Uncollectible  Non-operating  Revenues 48 

Income  Deductions. 

921.  Interest  Deductions *S 

922b.  Rent  for  Lease  of  Other  Gas  Plant 49 


56         i'uBLio  Service  Commission,  Second  District 


PAGE 

922.  Other  Rent  Deductions 49 

f .  Joint  Facility  Rents 49 

g.  Miscellaneous  Rent  Deductions 49 

923.  Sinking  Fund  Accruals 49 

f    *    Guaranties  of  Periodic  Payments 49 

iOss  on  Operations  of  Others 59 

Jther  Contractual  Deductions  from  Income 50 

9:    .  Amortization  of  Landed  Capital 59 

9L3.  Amortization  of  Debt  Discount  and  Expense 50 

929.  Amortization  of  Premium  on  Debt — Cr 50 

Appropriation  Accounts. 

931a.  Bad  Debts  Collected 51 

931b.  Other  Additions  to  Surplus 51 

932.  Expenses  Elsewhere  Unprovided  For 51 

933.  Dividends  on  Outstanding  Stocks 51 

934.  Amortization  Elsewhere  Unprovided  For 52 

935.  Appropriations  to  Reserves 52 

936.  Gifts  to  Controlled  Corporations 52 

937.  Other  Appropriations 52 

938.  Bad  Debts  Written  Off 52 

939.  Other  Deductions  from  Surplus 52 


Gaylord  Bros 

Makers 

Syracuse,  N.  Y. 

PAT.  JAN.  21.  1908 


«m 


